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HomeMy WebLinkAbout01/03/2000 TENTATIVE AGENDA SPECIAL MEETING SHAKOPEE, MINNESOTA JANUARY 3, 2000 LOCATION: 129 Holmes Street South Oath of Office by newly elected and re-elected officials Mayor Jon Brekke presiding 1] Roll Call at 7:00 p.m. 2] Approval of Agenda 3] Public Hearing: Card Club at Canterbury Park 4] Other Business 5] Adjourn CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Card Club Issues DATE: January 3, 2000 After discussions with the Police Chief, we feel there are five issues which the City Council may wish to address, depending upon the information presented at the card club meeting this evening(Monday). 1. Back Line Betting—Back Line Betting is the practice of allowing people to "look over the shoulder" of gamblers actually seated at the table, and placing bets on how those hands will fare. If two back line betters are allowed per seated gambler, it triples the number of gamblers at each table. Canterbury had requested two back line betting positions be authorized per seated gambler; at its December 29th meeting,the Racing Commission discussed reducing that to one back line better each. Staffs concern is that any back line betting increases the potential for conflict between back line bettors, and seated gamblers, especially when the seated gambler plays his/her hand in a manner contrary to what the back line bettor felt was appropriate. In addition,the security cameras will be trained on each table; the back line betting positions may not be able to be monitored. The amount of back line betting may have an impact on the numbers of security personnel that will need to be on staff at any one time. Staff Recommendation: Staff recommends that the City take a position of having no back line betting authorized. The Racing Commission has discussed this; a possible compromise would be that while there would be no back line betting initially, it could be something for which Canterbury could make application in the future, after operations are established. 2. Betting Limits—Certain types of games are being proposed to have "spot" betting allowed. In this type of gambling, each card hand would be allowed to have separate bets placed on the table, in addition to what the better might have to his hand. The Legislature allowed$15.00 as the maximum opening wager by any player in any card game. In addition, State law says"no single wager that increases the total amount staked in any card game may exceed $30.00." Canterbury had requested 20 spots per hand;the Racing Commission reduced that to 10 spots. The net effect of implementing the Racing Commission's authorizing is that each hand could have up to $315.00 bet upon it. Staff recommendation: We recommend no position on this, but to remind the Racing Commission that spot betting may invite this issue to be revisited by the Legislature to impose more restrictive limits. 3. Hours of Operation—Canterbury has requested 24 hour operation. This is consistent with the hours at neighboring Mystic Lake. Staff is aware that some casinos in California are allowing hours of operation only from 6:00 a.m. to 2:00 a.m. It is the thought that the four hour closing time will force gamblers to go home;this may reduce the potential for addiction for those with compulsive behavior. If a 2:00 a.m. to 6:00 a.m. closing time is not enacted immediately, the Council should ask that this issue be allowed to be revisited annually, to determine if there is merit in imposing such closing restrictions in the future. See attached article. Staff recommendation: We recommend that the Racing Commission authorize the hours of operation issue to be examined annually during March, with a decision made by March 30`h, beginning in 2001. 4. Age Limits—Currently, State law authorizes gambling at age 18. This is in conflict with the minimum age of 21 for alcohol consumption. Canterbury has stated that they will be allowing drinking on the premises, with some sort of identifying mark(wrist band, etc),to differentiate between those who are of age, and those who are under 21. Staff is concerned about this,but realizes that it will take an act of the Legislature to have the age of authorization for gambling increased from 18 to 21 years of age. Staff recommendation: Canterbury should be aware that the City will continue to do alcohol compliance checks, and that, if there are violations,there will be the potential for penalties, including administrative fines, license suspensions, and/or revocations. 5. City Expense Reimbursement—While the State Alcohol and Gambling Enforcement Division is responsible for monitoring the games, there will be other expenses that the City will incur as a result of the card club operation, either during its start up phase, or as it is ongoing. Staff recommendation: Staff recommends that an agreement be entered into prior to the opening of the card club, in which Canterbury agrees to reimburse the City in full for any card club-related start up or ongoing expenses incurred by the City. Such an agreement is currently being drafted by the attorney for Canterbury Park. If the Council chooses to take action on any of these recommendations,they can either do so tonight, or can direct that further information be provided, and that action could be taken at the January 4th City Council meeting. The Racing Commission will hold its public hearing on January 10th in the City Council Chambers at 7:00 p.m. The Commission is expected to consider the rules at a Racing Commission meeting to be held at 1:00 p.m. January 19th Mark McNeill City Administrator I:jeanette/cardclubissues 612 445 2313; Sent By: City of Shakopee; Dec-30-99 4:58PM; Page 2/2 Vol. 5• No. 12 •—] 5 l ACROSS THE STATES I a way to prevent new players from amount of risk." CALIFORNIA becoming addicted."There is no cure A hard-core gambler who has been for those already addicted to gam- coming to the casino says the restric- Cardroom limits Ming," Loan Thuy Nguyen told the tions won't stop his desire to play but Designed to Stop Addicts newspaper. Nguyen's anti-gambling he tells others not to start. "Don't At 4:00 a.m.there are 300 meiand efforts in 1995 included the first pro- become a gambler,"he warns a first- women filling San Jose's Bay 101 card posals to limit operating hours of time visitor. "I am addicted, I lost club. Their sole reason for 1:eing cardrooms, "But I think [cardroom $230,000 over two years."This gam- awake at this ungodly hour ,s to hour limits) can save those not yet bier worked for Intel as a technician gamble. But the San Jose City C)un- addicted. For instance, those who and graduated from UC Davis as an cil hopes to transform gambling "tom usually go to casinos after the night- engineer in 1996, Now he's unm- an obsession like this into a riore clubs close at 2 a.m. will now have ployed and lives with a friend, recreational activity, and recently to go home," Nguyen said. placed limits on card games foi the The owners of the card clubs say CONNECTICUT first time in decades. The cot.ncil the restrictions will hurt their busi- Man Med in voted to shut San Jose's two card ness. But by delaying the impact of clubs for four hours each morning the betting limits until mid-2001,the Parking lit and impose betting limits beginning city essentially gave the clubs 21 State police say an interview with in 2001. months to prove the measures will a man stabbed during a fight out- While some gamblers thought t1-.e unfairly cut into their profits, the side the Mohegan Sun Casino, may limit might help them cut the'r News said. shed light on what sparked the al- losses,others vowed the game wctuld "Don't become a gambler," one tercation which left another man go on. "It's a joke. Gamblers will not . player told the News. "It's not really dead, the first apparent homicide at quit, they'll find a place. They're-ust worth it. I've lost a lot of money."An the American Indian Casino in Con- like smokers,"a Bay 101 patron old unemployed construction worker necticut, Gambling Magazine re- the San Jose Mercury News.All of ;h.c who plays nightly at Bay 101, this ported. gamblers interviewed by the news- player earns chips by giving advice Steven Baron of Killingly was shot paper asked not to be named. "The to newer players. He's what the gam- and killed in a casino parking lot. restrictions will only stop this bL si- ing world calls a coach. "I don't even Medics from the casino found Baron ness, not the gambling. Give me a spend my own money. I never come inside a black 1994 Saab after state break,"the patron said. i here with money" police received a report of a fight in Bay 101 and it's competitor G tr1 Another coach-level player who the parking lot. Aldore Malboeuf of den City have been dogged by corn has been coming to Bay 101 every Sterling was admitted to a Norwich plaints of crime, harm to gambli as day for two years said that "cutting hospital for stab wounds. addicts and deterioration of families, hours will bring back the happiness Lt. Lawrence Gibeault of the East- particularly among the city's V(t- to many Vietnamese families." The ern District Major Crime Squad told namese-American community, .reason, he said, is that Vietnamese Gambling Magazine that it was un- which makes up a large part of the gamblers in particular play for much clear whether the two men had al- clubs'clientele, the News said. larger stakes. "They usually wager ready been inside the casino.A state The council's action was applaud(d several thousand dollars, so any police spokesman said investigators by Vietnamese-American activists es amount of time cut would lessen the were waiting to interview Malboeuf. He said it was also unclear whether Casino(,rime I)iQestm Drrember 1999 CITY OF SHAKOPEE Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Canterbury Card Club Comments DATE: December 28, 1999 At a special meeting to be held Monday, January 3rd,the City Council will hear a presentation by Canterbury Park President Randy Sampson on the proposed Card Club operation at Canterbury. The following Monday night, at January 10th at 7:00 p.m.,the Racing Commission will hold a statutorily required public hearing in the City Council Chambers at City Hall. The Commission is scheduled to consider and adopt rules for the conduct of the Card Club at a meeting to be held at Canterbury Park on January 19th. If after input taken at the January 3rd City meeting,the City Council should wish to make formal comments or take a formal position, action should be taken either at that meeting, or at the January 4th meeting. lAAIS M%KtAid Mark McNeill City Administrator MM:tw POKER TERMS Blind: A forced bet, used in Hold-Em and Omaha, that requires players to bet before any cards are dealt. Games with a blind structure are accompanied by a dealer button. Board: The cards that are face up in the player's hand. In Hold:Em and Omaha, the community cards. Burn a card: A standard procedure in which the dealer removes the next card from the deck by placing it face down under a chip. One card is burned between each betting round. Dealer button: Used to indicate which player is in the "dealer's position" in Hold-Em and Omaha. Door card: In stud games, the first exposed card in a player's hand. Eight or better to qualify: A form of high-low split in which the low hand must have an eight low card or smaller in order to qualify for the low and, otherwise, the high hand wins the entire pot. Flop: In Hold-Em or Omaha, the first three exposed community cards, which are dealt simultaneously. Fold: To give up your hand and any claim to the pot. Forced bet: A required bet to start the action on the first round of a Poker hand. In Seven-Card Stud, for example, usually the lowest card on board must make a forced bet. High-low split: A Poker game in which the highest and lowest ranking hands split the pot. Limit: The amount a player may bet or raise on any round of betting. Limit Poker: A Poker game where the minimum and maximum amounts a player may bet or raise on any given round of betting are fixed. Open: To make the first bet in a Poker hand. POKER HANDS Royal Flush: The highest ranking hand possible. Five cards is sequence and common suit with an ace high. Example: A*, K*, Q*, J*, 10* Straight Flush: All five cards are in both sequence and common suit. Example: J•, 10*, 9*, 8*, 7♦ Four-of-a-kind: Four cards of the same rank. Example: 10*, 10*, 10,, 104, 3♦ Full House: Three cards of one rank and two of another rank. Example: K*, K•, Kv, 8*, 8* Flush: Five cards of the same suit. Example: K*, J*, 8*, 4*, 2* Straight: Five cards in sequence. Aces may be used either high or low. Example: 104, 9v, 8*, 7*, 6* Three-of-a-Kind: Three cards of the same rank. Example: 104, 104, 10*, 6v, 3* Two Pair: Two groups of two cards of the same rank. Example: 8*, 8*, 5v, 5*, 2* One Pair: Two cards of the same rank. Example: K*, K*, 10*, 7*, 5* High Card: The rank of hands containing no pair is determined by the highest ranking card. Example: K*, Jv, 8*, 6v, 4* The Games The following is a list of poker games being proposed for the Canterbury Card Club. After approvals of all games are obtained, a full set of rules will be available. TYPES OF POKER GAMES SEVEN-CARD STUD Summary: Each player receives three cards down and four cards up. The best five-card Poker hand out of the seven cards wins the pot. Play: Each player antes and receives two cards down and one card up. The player with the lowest up card must open the betting. This is the only forced bet in the game. All other players may call the bet, raise, or fold. There are four additional rounds of betting after each of the fourth through seventh cards are dealt. The fourth through sixth cards are dealt up, and the last card is dealt down. On each round of betting after the first, the highest hand showing always starts the betting. Betting limits normally double after the fifth card is dealt. Players may check, bet, raise, or fold. Checking and then raising after another player bets is allowed. OTHER VARIATIONS OF SEVEN-CARD STUD • RAZZ • SEVEN-CARD STUD HIGH-LOW SPLIT • LOWBALL • DEUCE-TO-SEVEN (KANSAS CITY LOWBALL) HOLD-EM Summary: Hold-Em is similar to Seven-Card Stud. Each player receives two cards face down. Five cards are turned up in the center of the table and used by all players. Players may use any combination of their two hole cards plus the five community cards on the table to make the best five-card Poker hand. Play: Before any cards are dealt, the first player to the left of the dealer button must bet "in the blind." (In some games, two or more blinds are required.) After the first two cards are dealt, players may call the blind bet, raise, or fold. Players required to bet "in the blind" have an option to raise the blind on the first round of betting. After the first three cards are turned up (the "flop"), each player starting with the first player to the left of the button may check, bet, call, raise, or fold. On each round of betting after the flop, the player to the left of the button starts the action. Betting limits normally double after "fourth street" is dealt. OTHER VARIATIONS OF HOLD-EM • CRAZY PINEAPPLE OMAHA Summary: Omaha is similar to Hold-Em. Each player receives four cards face down. Five cards are turned face up in the center of the table and are used by all players. Players must use precisely two cards from their four card holding and three cards from the five community cards to make the best five-card Poker hand. Play: Same as Hold-Em. OTHER VARIATIONS OF OMAHA • OMAHA HIGH-LOW SPLIT (8 OR BETTER) DRAW POKER (Jacks-or-Better) Summary: All five-card jacks-or-better Draw games require a pair of jacks or better to open the pot. The game is played with a 53-card deck, which includes the joker. The joker can be used either as an ace or as any card that completes a straight, flush, or straight flush. Play: Each player is dealt five cards. A player who opens the pot in jacks- or-better must show the openers, whether the hand is called or not, in order to win the pot. There are two betting rounds, one before the draw and one after the draw. The betting limit after the draw is twice the amount of the betting limit before the draw. OTHER VARIATIONS OF DRAW POKER • JACKS BACK • ASIAN STUD • MEXICAN POKER PLAYERS 21 Summary: Players 21 is a variation of Blackjack whose players compete against each other and not the house as they wound in traditional casino Blackjack. Play: All players receive two cards. If a player has an ace and a face card or ten, the player must turn the hand over immediately. This is called a "natural" and that player will be awarded the pot. In the event the "natural" was not turned over before any one player has acted, it will play as 21 and all other players may hit. OTHER VARIATIONS OF 21 Minnesota 21 Pan Summary: The object of the game is to have combinations of three or more cards in sets or runs(known as melds) laid on the table in front of the player using eleven cards. The first player doing so is the winner and receives chips from other players that still have chips and cards remaining in their hands. The winner of the hand will win from the other players. Two to seven players may play. Play: Players are dealt 10 cards, five (5) at a time in a counterclockwise direction. Each player draws one card from the top of the deck or uses the option card. If the player takes the top card off the deck, that player must use it immediately in a meld or discard it. After drawing and before discarding, the player may meld as many sets or runs as he holds or may add to existing melds. There is no rank of suits except that spades rank double. Pai Gow Poker Summary: Pai Gow is played with a 53-card deck, which includes the joker. The joker can be used as an ace or as any card that completes a straight or flush. Play: The house dealer deals the cards into seven hands of seven cards. Six of the hands go to players and one hand goes to the player/banker. Out of the seven cards each player receives, the player creates a two-card hand and a five-card hand. The two-card hand must rank lower than the five-card hand. The goal of the game is to make two hands that are both higher than the two hands made by the banker. Pai Gow Poker uses the same ranking of hands as in other high poker games. Super Nine Summary: Super Nine is a fast-paced game, which uses a deck that does not contain 7s, 8s, 9s, & 10s, all picture cards have value of zero. The value of the hand is the value of the "ones" column in the total of the hand. For example, a player receives 6, 4, and 3 in the first three cards. This hand totals 13, but the hand has a value of three. The player draws a 5. The hand totals 18, but the value of the hand is now eight. Play: The house dealer deals three cards to each player, including player/banker. Each player then has the opportunity to draw one additional card. The object of the game is for the player's cards to total as close to nine as possible. The goal is for the player's hand to beat the player/banker's hand. 13 Card Poker Summary: 13-Card Poker uses a standard 52-card deck. The game uses no jokers or wild cards. The game is played with two, three, or four players; each one taking turns at being in the dealer position. Play: Each player is dealt 13 cards, which the player arranges into three Separate poker hands; one three-card hand in front and two five- card hands. Each hand must rank higher than the hand before it. Of the three hands, the back five-card hand must be the best hand. The goal of the game is for all three of the player's hands to rank higher than the opponent's hands. 13-card uses the same ranking of hands as in other high poker games. Job or ung i es Canterbury Park Card Club will add approximately 300 full and part time employment opportunities. • Dealers Canterbury Park Card Room Job Fair • Cage personnel • Chip Runners Thursday, January 20, 2000 10:00 AM-7:00 PM • Security • Surveillance INFORMATION • Wait Staff r' INTERVIEWS,Ws, • Chefs i _ AND AUDITIONS! 4 • Bartenders • Food and Beverage Management • Porters For additional information, contact Human Resources at 612-496-6436 * 612-445-7223 * 800-340-6361 The Room • The Card Club will be located on the first level of the grandstand, adjacent to the valet parking entrance. • The Card Club will be over 15,000 sq. ft. The estimated cost of the room, including construction, surveillance equipment, furniture and fixtures is expected to be approximately $2 million. • The room will open with 30 - 35 tables, but will have the ability to expand to 50 tables based market demand. • A full service bar. • Food service, snack bar and buffet. • Practice tables for new players to learn the games. • TV monitors for horse racing and sports. Betting windows for simulcast and live horse racing. • Gift Shop. • Coat Check. • Valet Parking. re—.-- t,,—_ II1 Q® I ® I® s , ico co, r) l _ 1 • IIS (] _ I —, I c02° ®` ' ` ' o e;i ,: alio ! iii IijI S ___Oc_ED " =DI ti ' — Hi j 1 .{ r UD � 0 0 II I $1 L I f `- 00 � o z MIK ii. AK ' n I I , � a 0n �� n 0 I a 0 � o0 I1 � 0 li II oI I ® 0 00 Q 1 `CI. � ...._ p 0 00 I p ® ,. . , O O H [ EJ 1�Msc. J�Lf 4- 1.11 I B a� m Qv AAIAAACk.. 1h. e, — G N / J II Cg, ti� Canterbury Park 2 i11 Valet Entrance \ = __ ' .y ;,.. 0 cl) - .. I • I ! I •I ! I I ' ! 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If i illin 1 'T7-1-n ' y 1!111' i ,0- 1 •-_,, . . ' ,I1 "i'l III . L vv.. 0- 1 -• • . • s lj 1 ! 1 IL - . • . . . .. , . 1 • • . .L. . , .1: i . . . 1 - , — • . . -, . ! - i . The Facts Background • The authority for the card club was granted by the 1999 Minnesota Legislature and signed into law by Governor Jesse Ventura on May 24, 1999. The Minnesota Racing Commission was granted the regulatory authority. • The intent of the legislation is to provide a revenue opportunity that will benefit the Minnesota horse racing and breeding industry by increasing purses and breeders' fund money. • The Minnesota Racing Commission is expected to grant approval of the proposed operating plan in January, 2000. • Canterbury Park plans to open the card room in April, 2000. Card Room Operations • Market research indicates that the demographics of card players are similar to those of horse players. The typical player is 35-60 years old, married, almost 80% male, college-educated with an average income of $50,000. • Canterbury Park Holding Corporation will manage the card club and has employed knowledgeable gaming experts with significant experience operating such facilities. • The law permits up to 50 tables. • No one under the age of 18 will be allowed to enter the Card Club. • The law does not allow individual wagers to exceed $30.00. • The law does not permit "house" banked games, players bet against each other. • The card club plan proposes 19 different unbanked games, which use at least one standard 52-card deck. • Canterbury Park proposes the operation will remain open 24-hours each day, 365 days a year. The Company may elect to shorten those hours based on market demand. • The card club is expected to add approximately 200 full time jobs and 100 part time jobs; this will double the current payroll of Canterbury Park Holding Corp. Regulation/Public Safety and Security • The Shakopee racetrack has been a state-regulated gaming facility since 1985, and has been effectively regulated by the Minnesota Racing Commission during these years. • Canterbury Park will make a significant, investment to create and execute a security and surveillance plan to provide for public safety and gaming integrity. All security and operating plans must be submitted to the Minnesota Racing Commission for review and approval before the license for the card room will be granted. • Since purchasing the racetrack in 1994, Canterbury Park Holding Corporation has had an outstanding record of regulatory and gaming compliance. It has also worked extremely hard to create and maintain the facility as a safe, clean year-round entertainment center, which offers summer horse racing as its centerpiece. • Canterbury Park will continue to work closely with the Shakopee Police Department, Scott County Sheriff's Office and the state's Alcohol and Gambling Enforcement Agency, to ensure the safety of patrons, employee's, neighbors and businesses in the Shakopee Valley area. • A surveillance manager with gaming experience will create a team to insure the games are operated with integrity. All activities on the Card Club floor, cage and count areas will be monitored for cheating and theft. The Canterbury Park Security team will remain responsible for the physical safety of customers, employees and visitors. • An emphasis on proper behavior will be enforced. Canterbury Park will enforce a zero tolerance policy on bad behavior and will remove any persons exhibiting behavior that is intimidating or violent. • A Canterbury Security team member will be assigned full-time to traffic, and parking lots. Surveillance cameras will be installed in the parking lots to provide additional security. Benefits • The law requires 10%-14% of the gross revenue to go directly to purses and the Minnesota Breeders Fund. The new gaming authority will generate additional revenue for purses, which sustain the Minnesota horse racing industry. Revenue projections for a full year of operation project purses to increase $lmillion to $1.5 million (a 25% increase from 1999 levels). • The industry is important to rural Minnesota and generates approximately $100 million in economic activity per year for the state, primarily in agricultural-related goods and services. • The long-term viability of Canterbury Park is further enhanced by having the authority to offer more than one gaming option at its existing location. Dual gaming activity has resulted in increased horse racing wagering at other race tracks. • The State of Minnesota will receive additional tax revenue since the facility is a tax-paying gaming business. Responsible Gaming • Canterbury Park will participate in the C.A.R.E. program, Compulsive, Awareness for Responsible Employees; the program will be included in all employee training. C.A.R.E is a workshop designed to broaden the gaming employee's knowledge and understanding of problem gambling. People who enjoy card playing for recreation will have an excellent facility with desirable amenities, and a safe, friendly environment for their entertainment.