Montana Gaming Group: Montana Gaming Research &...

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E-mail: [email protected] Main Office: 406-782-3660 “Dedicated to Serving the Montana Tavern and Gaming Industries” Vol. 19, Number 5 A Tash Communications Publication April 2014 Montana Tavern Times Visit these Hospitality/Gaming Industry Web sites: Montana Gaming Group: http://www.montanagaminggroup.com Montana Gaming Research & Education Fund: http://www.gamblingmontana.org This publication endorsed by the Montana Tavern Association PRSRT STD U.S. POSTAGE PAID Permit No. 120 Bozeman, MT 59718 Change service requested: 914 Holmes Ave., Butte, MT 59701 On the road again By Paul Tash Montana Tavern Times Riding the wave of a successful Montana debut of the new E20 Upright machine and 14 popular game themes, global gaming enter- tainment provider IGT is primed to release another game suite for the E20 in the state to respond to growing player demand. The new game set features two new line games and three new keno games. IGT’s E20 established itself “as the line-game box” with Montana players following its debut in May 2012, said Kevin Lintner, IGT’s account manager for the state. He said about 1,000 E20 machines, featuring the enhanced AVP (Advanced Video Platform), are By Paul Tash Montana Tavern Times The Gaming Industry Association of Montana will sponsor its third annual Spring Road Show in five Montana cities in May. The Road Show continues to grow in popularity with gaming operators across the state. The Show is the perfect opportunity to compare gaming machines side-by-side, talk to machine representatives, and actually play the hottest and newest games available. The Spring Road Show fea- tures eight game-machine man- ufacturers. Participating manu- facturers are Epic Software, Fleetwood Gaming, Grand Vision Gaming, IGT, MTD Gaming, Game Tech (Spielo), Summit Gaming and U1. “If you have video gambling as a significant revenue source in your business, it is a must that you attend one of the shows,” said Neil Peterson, GIA hosts Road Show in May Gaming group gives back to community By Paul Tash Montana Tavern Times Continuing a tradition of giv- ing, the Gaming Industry Friends To Society (GIFTS) charity pro- gram donated $23,380 to 47 local entities and individuals in 2013. GIFTS is comprised of 58 tav- erns and casinos mostly serviced by Rocky Mountain Gaming in southwest Montana, primarily in the Bozeman/ Belgrade area but including Gallatin, Madison and Jefferson counties. Each participating gaming business contributes a portion of its gaming earnings to a fund that is then disbursed to charitable pro- grams, often targeting youth and needy individuals in the region. The program is now in its 17th year, said Rocky Mountain Gaming’s Sid Langehough. “We would like to thank the bar owners and casino operators on the Rocky Mountain Gaming route, along with the Town Pump Foundation, for their continued generous support,” he said. The largest single amount, See CHARITY Page 8 IGT set to release new E20 game suite GIFTS now playing in Montana. Lintner said five new games – two line games and three keno games – are scheduled to roll out later this month for the E20, pending final state approval. “IGT was able to pull from its vast global library of line games and pick the best-of-the-best and pro- vide them to Montana players,” he said. “It’s a luxury to see how these games perform across the country, and across the world in some cases.” After Montana play- ers worked through a learning curve for video line games, introduced in January 2012, the games now have enthusiastic fans lining up to play, Lintner said. “IGT does a great job of adapting its core library of game See IGT Page 3 Kevin Lintner Conference reminder – Page 4 Conference reminder – Page 4 executive director of the Gaming Industry Association (see his column on Page 5). The show is scheduled for: • May 6 in Kalispell at the Hilton Garden Inn, 10-3; • May 7 in Helena at Jorgenson’s, 10-3; • May 8 in Great Falls at the Holiday Inn, 10-3; • And May 9 in Billings May 9 at the Holiday Inn Grand, 10- 3. The last stop for the GIA Road Show will be in Missoula on May 20 at the Broadway Inn and Convention Center from noon to 3, prior to the start of the GIA’s Annual Meeting. Despite their competition, machine representatives agree that the operators are the real winners because more manufac- turers also mean more choices of machines and games for operators and players. BRUCE WILSON of Grand Vision Gaming, right, explains one of the company’s games to Lenny Readicker, of Lenny’s Casino in Butte, at last year’s GIA Road Show. Paul Tash photo

Transcript of Montana Gaming Group: Montana Gaming Research &...

E-mail: [email protected]

Main Office: 406-782-3660

“Dedicated to Serving the Montana Tavern and Gaming Industries”

Vol. 19, Number 5 A Tash Communications Publication April 2014

MontanaTavern TimesVisit these Hospitality/Gaming Industry Web sites:Montana Gaming Group: http://www.montanagaminggroup.com

Montana Gaming Research & Education Fund: http://www.gamblingmontana.org

This publication endorsed by the Montana Tavern Association

PRSRT STDU.S. POSTAGE

P A I DPermit No. 120

Bozeman, MT 59718

Change service requested: 914 Holmes Ave., Butte, MT 59701

On the road again

By Paul TashMontana Tavern Times

Riding the wave of a successfulMontana debut of the new E20Upright machine and 14 populargame themes, global gaming enter-tainment provider IGT is primed torelease another game suite for theE20 in the state to respond togrowing player demand. The new

game set features two new linegames and three new keno games.

IGT’s E20 established itself “asthe line-game box” with Montanaplayers following its debut in May2012, said Kevin Lintner, IGT’saccount manager for the state. Hesaid about 1,000 E20 machines,featuring the enhanced AVP(Advanced Video Platform), are

By Paul TashMontana Tavern TimesThe Gaming Industry

Association of Montana willsponsor its third annual SpringRoad Show in five Montanacities in May.

The Road Show continues togrow in popularity with gamingoperators across the state. TheShow is the perfect opportunityto compare gaming machinesside-by-side, talk to machinerepresentatives, and actuallyplay the hottest and newestgames available.

The Spring Road Show fea-tures eight game-machine man-ufacturers. Participating manu-facturers are Epic Software,Fleetwood Gaming, GrandVision Gaming, IGT, MTDGaming, Game Tech (Spielo),Summit Gaming and U1.

“If you have video gamblingas a significant revenue sourcein your business, it is a mustthat you attend one of theshows,” said Neil Peterson,

GIA hostsRoad Show

in May

Gaming groupgives back

to communityBy Paul Tash

Montana Tavern TimesContinuing a tradition of giv-

ing, the Gaming Industry FriendsTo Society (GIFTS) charity pro-gram donated $23,380 to 47 localentities and individuals in 2013.

GIFTS is comprised of 58 tav-erns and casinos mostly servicedby Rocky Mountain Gaming insouthwest Montana, primarily inthe Bozeman/ Belgrade area butincluding Gallatin, Madison andJefferson counties.

Each participating gamingbusiness contributes a portion of itsgaming earnings to a fund that isthen disbursed to charitable pro-grams, often targeting youth andneedy individuals in the region.

The program is now in its 17thyear, said Rocky MountainGaming’s Sid Langehough.

“We would like to thank thebar owners and casino operators onthe Rocky Mountain Gamingroute, along with the Town PumpFoundation, for their continuedgenerous support,” he said.

The largest single amount,See CHARITY Page 8

IGT set to release new E20 game suite

GIFTS

now playing inMontana.

Lintner said fivenew games – twoline games and threekeno games – arescheduled to roll outlater this month forthe E20, pendingfinal state approval.

“IGT was able topull from its vastglobal library of line games andpick the best-of-the-best and pro-vide them to Montana players,” hesaid. “It’s a luxury to see how

these games performacross the country, andacross the world in somecases.”

After Montana play-ers worked through alearning curve for videoline games, introduced inJanuary 2012, the gamesnow have enthusiasticfans lining up to play,Lintner said.

“IGT does a great job ofadapting its core library of game

See IGT Page 3

Kevin Lintner

Conferencereminder– Page 4

Conferencereminder– Page 4

executive director of the GamingIndustry Association (see hiscolumn on Page 5).

The show is scheduled for:• May 6 in Kalispell at the

Hilton Garden Inn, 10-3;• May 7 in Helena at

Jorgenson’s, 10-3;• May 8 in Great Falls at the

Holiday Inn, 10-3;• And May 9 in Billings May

9 at the Holiday Inn Grand, 10-3.

The last stop for the GIARoad Show will be in Missoulaon May 20 at the Broadway Innand Convention Center fromnoon to 3, prior to the start ofthe GIA’s Annual Meeting.

Despite their competition,machine representatives agreethat the operators are the realwinners because more manufac-turers also mean more choicesof machines and games foroperators and players.

BRUCE WILSON of Grand Vision Gaming, right, explains oneof the company’s games to Lenny Readicker, of Lenny’sCasino in Butte, at last year’s GIA Road Show.

Paul Tash photo

Montana Tavern Times – 2 April 2014

Montana Tavern Times – 3April 2014

IGTfrom Page 1 NEW IGT games

expected out thismonth include the linegame “Shadow of thePanther” and the kenogame “KenoExplosion.”

Art courtesy of IGT

content to the Montana market,”said Jim Coleman, IGT productmanager. The new games, headded, are a “well-rounded set, andwon’t have just one game that car-ries the box.”

“The set in its entirety willappeal to players,” Coleman said.

The new line games includeShadow of the Panther, an edgygame that offers IGT’s player-proven Super Stacks featuringa large variety of stackingsymbols that drive high levelsof anticipation and playerexcitement.

“Super Stacks andShadow of the Panther havebeen very successful for usover the last few years,”Lintner said.

Another historically well-performing game title thatwill be newly available inMontana is the sweetly-themed Candy Bars, Lintnersaid.

“This is a game that hasperformed really well forIGT,” Lintner said. “It’s a graphi-cally fun game that offers playersthree levels of awards. The firstlevel is a smaller jackpot with ahigh frequency. The second leveloffers a bigger prize that hits often,but not as frequently as the first,and the third jackpot is nearly $800and creates major excitement forthe players who win it.”

“Candy Bars allows players toclearly see what they can win. It’sa unique way to award these multi-level prizes that are advertised inthe top LCD display of themachine.”

Shadow of the Panther andCandy Bars will join the otherthree line games in the E20 thatcontinue to perform well –Siberian Storm, Three Kings, andDa Vinci Diamonds.

“Our data shows that 60 to 70percent of play is happening on ourline games,” Lintner said. “Theremaining percent of play is keno.”

The opposite ratio is true forother gaming manufacturers, hesaid, further showing IGT’s line-game market strength.

“Our product is competitivelystrong in Montana.”

“IGT isn’t focusing on just linegames, however,” Coleman added,“The company is consistently rais-ing the bar for keno, as well. Thisis just one of the many innovativeproduct lines which are proving tobe extremely successful.”

Three new keno games comingto the IGT E20 cabinet are KenoExplosion, Bonus Spot Keno andCleopatra Keno.

Keno Explosion is a form ofextra-draw keno, with random

bombs placed on the screen. If thebombs are triggered, up to threeextra draws per explosion (a totalof nine) are awarded.

Bonus Spot Keno plays off ofthe idea of Power Keno, with theexception that power hits aren’tnecessarily limited to the last hit –the player chooses which spot isthe power spot.

Cleopatra Keno is a four-cardkeno game that allows players towin free games on each of the fourcards being played.

In addition to hosting populargames, “the E20 machine offerssolid, under the hood reliability,”Lintner said.

“It’s an easy machine for anoperator to run,” Lintner said,adding that IGT has incorporatedfeedback on issues related to theserviceability and dependability ofthe game cabinet, creating amachine that is a solid choice forthe Montana market.

“IGT has other plans for theMontana market as well, includingthe introduction of the UniversalSlant premium cabinet,” Colemansaid.

IGT maintains a strong pres-ence in Montana. Lintner is basedin Helena, and the company stillruns its service operations out ofMissoula. In addition, a group of17 engineers in Bozeman continuesto develop games focusing specifi-cally on the “bar and tavern mar-kets” in Montana, Louisiana,Illinois and South Dakota.

The Company’s investment inthe state is also evident in IGT’seffort to meet the specific needs ofMontana game players.

“IGT has worked very hard tomake sure the AVP platform meetsthe needs of the Montana market,”Lintner said, adding that IGT’s

new game releases and cabinetintroductions “provides continuedvalue for years to come.”

To follow up on that effort,IGT is offering advantageous pric-ing for customers.

“We’ve put together a pricepoint that keeps smaller operatorsin mind,” Lintner said. “We wantour product to be attainable andupgradeable – a premium productat an affordable price.”

IGT is also introducing a pro-gram to help operators market thegames themselves, such as makingmarketing materials available 24/7to operators directly on IGT.com.

The E20 and its new gameswill be available at the multi-cityRoad Show in May, sponsored bythe Gaming Industry Associationof Montana.

By Dave JeseritzInvestigations Bureau ChiefGambling Control Division

This month’s article isaddressed to all bar and casinomanagers working across thisgreat state. First, I would like tosay “congratulations!” in becom-ing a manager, as you haveobviously been identified as anemployee who is responsible,effective, trustworthy, and com-mitted to the success of youremployer’s business.

Your managerial title comeswith certain responsibilities, butdo you know that your positionmust comply with notice andapproval requirements of theLiquor Control and GamblingControl Divisions? Do you knowwhether a “ManagementAgreement” has been submittedand approved by the Divisions?Do you know what happens ifyou’re not in compliance?

I urge you to carefully readthe remaining article and thenshare it with the licensee aswell, as this discussion is aimedto help you answer these ques-tions.

First, let me focus on therequirement of the LiquorDivision’s Administrative rule42.12.132 regarding manage-ment agreements.

1. Licensees who areallowed to sell alcoholic bever-

April 2014Montana Tavern Times – 4

Opinion/EditorialTavernTimes

Bar, casino managers carry responsibilities

By Chris CaldwellMTA Administrator

Spring is finally here. Wewish someone would let MotherNature know. Enough snowalready!This month, informational fly-

ers for the 2014 MTAConvention and Trade Show willbe sent to potential vendors. Ifyou are a vendor interested inparticipating in our Trade Showand don’t receive a flyer, call meat (406) 442-5040. I’ll see thatyou receive the information. New vendors join our show

each year. The Trade Show is agreat time place to introduce product orservice to tavern owners as a group.The MTA Convention and Trade Show

this year will be Sept. 8-11 at the GranTreeInn in Bozeman. Plan now to join us. Youare welcome to attend, and you don’t haveto be an MTA member.

We put together a large Trade Showwith a variety of vendors who offer goodsand services of interest to those of you inthe industry. Check it out, you just mightneed something! Government officials and industry regu-

lators attend our convention. These officials

provide valuable information andwill respond to issues of concernto our industry. You won’t wantto miss this opportunity to keepup to date on issues that affectthe way you do business. And, of course, a number of

social events are planned, aswell. You’ll be glad you came.At the end of this month

membership applications will besent to those of you who are notcurrently MTA members. Pleasetake the time to read our infor-mation about the TradeAssociation that represents you,member or not, and consider

becoming an MTA member. We need youand you need us to protect your right tooperate your alcoholic beverages business. If you have any questions or need any

information, call me at (406) 442-5040,email me at [email protected] or leavea message on our membership hot line.

Plan now to attend MTA convention

Please join us forthe MTA’s 59th

Annual Conventionand Trade ShowSept. 8-11 inBozeman.

Chris Caldwell

ages are authorized to employyou as a manager, so that goodnews!

2. As a manager, you arethe licensee's agent, and if del-egated, you can oversee thealcoholic beverages businessconducted in the licensee's

licensed premises. 3. Now, here comes legal

verbiage … "the manager or theperson designated to representthe manager must possess apast and present status as abusiness person and citizenwho demonstrates the likeli-hood of operating the licensedestablishment on behalf of thelicensee in compliance with allapplicable laws of the state andlocal governments.”

What does that all mean? Itmeans that you have a lot ofresponsibilities, both to youremployer, their business, to theLiquor Control Division and, ifthe employer has a gamblinglicense, to the GamblingControl Division as well. That’s

where your extra pay is trulyearned.

4. I am using bold print hereto share some important infor-mation that both you and thelicensee need to know and fol-low in a timely manner: Within30 days of employing you asthe manager, the licenseemust file with the departmenta signed original of the writ-ten management agreement,a personal history statement,

and a complete set of finger-prints that clearly disclosesthe following information:

a. the manager's name,address, telephone number,mailing address ( if differentfrom street address), and oneof the following:

i. Social Security number forindividuals; or

ii. federal employer identifi-cation number for a business;

b. the amount of compensa-tion to be paid to the manager;and

c. the specific duties andresponsibilities delegated to themanager by the licensee.

5. The management agree-ment must comply with the fol-lowing standards:

a. The licensee must retainthe possessory interest in thepremises through ownership,lease, rent, or other agreementwith the owner of the premises;and

b. While the agreement maydelegate duties to the manager,the licensee must retain ulti-mate control, liability, responsi-bility, and accountability for theretail alcoholic beverage opera-tion.

6. The management agree-ment may not assign or limitany of the rights or responsibili-

As a manager,you are the

licensee's agent, andif delegated, youcan oversee thealcoholic beveragesbusiness ....

Dave Jeseritz

See MANAGERS, Page 7

Montana Tavern Times – 5April 2014

Opinion/EditorialTavernTimes

eStop allows one-stop, online licensing

GIA Road Show, convention to highlight busy May

By Denise BrunettLiquor Licensing Bureau Liquor Control DivisionThe one-stop licensing pro-

gram has a new name – eStopBusiness License Service. Thelaunch of eStop comes withnew online capabilities, allowingbusinesses to apply and renewfor up to seven state licensesall at once with one payment.Licenses offered on eStopinclude Food Purveyor, TobaccoRetail and Wholesale, Off-Premises Beer and Wine,Nursery, Petroleum Dealer(Meters), Weighing Device(Scales and UndergroundStorage Tank). This method of licensing is

especially convenient for gro-cery and convenience storeswith gas pumps. They can gettheir food, tobacco, beer andwine, weighing and petroleum-related licenses all at once. To gaining initial access to

eStop Licensing, go to ePassMontana atSVC.MT.GOV/DOR/ESTOP-PORTAL/DEFAULT.ASPX or tothe Department of Revenuewebsite at revenue.mt.gov.Follow the directions to createor access your ePass Montanaaccount. The Montana

Department of Revenue man-ages eStop. Call the depart-ment toll-free at (866) 859-2254(in Helena, 444-6900) or [email protected] if youhave any questions about usingeStop.

Another exciting develop-ment at the Department ofRevenue involves recent leg-islative changes that allow forfour types of off-premiseslicenses: Convenience/GroceryStores, Pharmacy, Stand-Aloneand Sacramental Wine. Theselicenses are not governed byquota limitations. The Stand-Alone license requires an

establishment to earn at least95 percent of their annual grossincome from the sale of beer,table wine or from both beerand table wine. These types ofestablishments are usually spe-cialty beer and wine stores.The Sacramental Wine

license is for off-premises con-sumption and allows the busi-ness to be located in or outsideMontana. The licensee can selland deliver at retail wine withup to 24 percent of alcohol byvolume to rabbis, priests, pas-tors, ministers or other officialsof churches or other estab-lished religious organizationsexclusively for use as sacra-

mental wine or for other reli-gious purposes.The Department reminds

applicants and licensees,specifically those consideringalterations, to reviewAdministrative Rules ofMontana, 42.12.122 and42.12.137, which address suit-ability of premises. An off-prem-ises licensee may not allowanyone who purchases beer orwine from his or her establish-ment to consume it anywhereon the property owned orleased by the licensee.That includes property that

is part of, adjacent to or used inconnection with the licensed off-premises business as shown onthe floor plan that the licenseesubmitted to the Department ofRevenue for approval. Thisincludes patios, decks, parkinglots, sports or play areas, andso on.Off-premises locations must

meet certain requirements toqualify for a license, including:• They must sell beer and/or

wine for off-premises consump-tion in their original packagesonly.• They must operate in a

space that is physically separat-

By Neil PetersonGIA Executive DirectorMay will be gambling month

for the Gaming IndustryAssociation (GIA).Kicking off the month will be

the third annual GIA RoadShow, which has proven to be abig event for folks involved inthe gaming industry in Montana.The GIA Road Show is open tothe public and anyone canattend. Again this year, all eight

video gaming machine manufac-turers who produce games forMontana will be in attendance:Grand Vision Gaming, SummitGaming, U1 Gaming, Fleetwood Gaming,Game Tech (Spielo), MTD Gaming, EpicSoftware, and IGT.The Road Show starts in Kalispell on

May 6 at the Hilton Garden Inn, moves toHelena on May 7 at Jorgenson’s, then toGreat Falls May 8 at the Holiday Inn, andwraps up the week in Billings May 9 at theHoliday Inn Grand. The last stop for the GIA

Road Show will be in Missoula on May 20at the Broadway Inn and Convention Centerprior to the start of the GIA’s AnnualMeeting. The GIA Road Show provides a one-

stop shopping experience showcasing thelatest video gaming hardware and softwareavailable in Montana. If you have videogambling as a significant revenue source in

your business, it is a must thatyou attend one of the shows.The GIA holds its Annual

Meeting in Missoula at theBroadway Inn and ConventionCenter May 20-21. The eventkicks off Tuesday afternoon,May 20, with the preliminaryrounds of the Freeze Out PokerTourney. The poker tourneytakes a break during the GIAReception and Trade Show from6-9 p.m., and then the pokertourney finals wrap up the night.On Wednesday, May 21, the

GIA will hold its board meeting,with everything wrapping upearly in the afternoon.

I encourage all members of the GIA tomark these dates on your calendar and planon attending. Remember, the two mainadvantages to your GIA membership areinformation and networking. If you don’tattend, you can’t take advantage of thesetwo key components.I look forward to seeing you all some-

time in May.

Iencourage allmembers of the

GIA to mark thesedates on yourcalendar and planon attending.

Neil Peterson

Off-premiseslocations must

meet certainrequirements toqualify for a license....

Denise Brunette

See eSTOP Page 8

Montana Tavern Times – 6 April 2014

Montana Tavern Times – 7April 2014

Opinion/EditorialTavernTimes

Paul Tash, Editor/Publisher • [email protected] phone: 406-782-3660 • Cell: 406-491-0100

Paul Vang, Contributing Writer • [email protected] 406-494-5736

Ad Production • [email protected]

Postmaster: Please send address change requests to 914 Holmes Ave., Butte, MT 59701

All rights reserved by publisher

This publication has been endorsed by the Montana Tavern Association

Reprints of articles and back issues are available at a cost of $10.If you wish to begin receiving the Montana Tavern Times,

send your name, mailing address, telephone number and $29 to the address above.

Tavern Times Business and News Office:914 Holmes Ave., Butte, MT 59701

• TEL: 406-782-3660 • FAX: 406-494-1324 • E-MAIL: [email protected]

A Tash Communications Publication

ties of ownership. Basically, asmanagers, you are not permit-ted to have the followingassignments given to you:

a. Control of businesshours, types of alcoholic bever-age products sold, selling price,level of inventory maintained,and overall business atmos-phere;

b. Exclusive authority overbusiness accounts and opera-tion funds;

c. Authority to remodel orotherwise make changes in thebusiness operation requiringnon-routine actions;

d. Ultimate decision-makingauthority regarding the hiring,firing, advancement or promo-tion, or any other change of sta-tus of other employees;

e. Liability for businessexpenses and losses, eitherdirectly or through an indemnifi-cation agreement with thelicensee. The licensee mayrequire the manager to do theministerial act of paying theexpenses, but this must beaccomplished by using thelicensee's funds; or

f. Ownership of the invento-ry or the right to use or disposeof it at will.

7. The licensee must main-tain an active participation inthe business operation suffi-cient to ensure the proper andlawful conduct of the business,and execute all reports requiredby governmental agencies thatattest to the licensee's owner-ship and certify compliance withapplicable statutes and regula-tions. The licensee may work inthe establishment at any time;

8. The agreement may notbe assignable by the managerto a successor manager withoutthe written consent of thelicensee;

9. The agreement may notplace any restrictions on thelicensee's right to transfer, mort-gage, hypothecate, or alienatethe license, or change the loca-tion of the operation;

10.The agreement must beterminable upon the licenseetransferring the license, sellingthe business, or otherwiseceasing business operations atthe licensee's option;

11. The agreement mustprovide for compensation.

a. Compensation must bestated as either as a fixedamount, a percentage of gross

Managersfrom Page 4

sales, or a combination of fixedamount and percentage ofgross sales (note: this is differ-ent for combined liquor/gam-bling establishments, asGambling Control Division’sadministrative rules do notallow for a percentage of grosssales to be included in theagreement); and

b. The compensation of themanager must be commensu-rate with the duties performed,cannot consist of net profitsfrom the business, and cannotbe less than the federal wageand hourly standards for anindividual.

12. The management agree-ment must establish a principalagent, employer-employee, orother type of agency relation-ship, making the managerresponsible to the licensee forthe performance of assignedduties, while the licensee isresponsible or the proper per-formance of the manager.

13. Failure of the licensee toterminate operations under avoid management agreementconstitutes a violation ofMontana law and departmentalrules.

Next, I’ll address theGambling Control Division’srules for managers.

1. A "Manager" in a gam-bling establishment means aperson employed or authorizedby the licensee to supervisepersonnel or business functionsof the licensed operation.Every person who is authorizedto supervise personnel or thebusiness functions of a licensedoperation must operate under awritten “management agree-ment.”

2. A "management agree-ment" means a contractbetween the licensee and man-ager(s). As under the LiquorControl Division’s rule, theagreement may not transfer anownership interest in thelicensed operation or limit orrelieve the licensee of recordfrom the responsibilities of own-ership. However, the rule notesthat bonuses or bonus-typepayments based on job per-formance are not consideredownership interests if they areprovided in conjunction with areasonable salary base and donot assign or transfer an owner-ship interest. Getting bonuses?Great! Just make sure yourmanagement agreement clearlyspells out when and how youare to receive them.

Write usThe Montana Tavern Times welcomes letters to the editor. Letters must

include the writer’s name and address. The word limit is 300. Mail to Montana Tavern Times, 914 Holmes Ave., Butte 59701, or email

the office at pault@tashcom munications.com. The Times reserves the rightnot to print letters it finds objectionable.

3. As required under theLiquor Division’s rule, GamblingControl Division’s administrativerules 23.16.502 and 23.16.508require that any employment ofa manager or managementcompany, or any change inmanagement employees orcompany (i.e., the hiring or fir-ing or changing the status of amanager) must be reported tothe Gambling Control Divisionwithin 30 days of the date ofchange.

Thus, whenever a licenseehires a manager or manage-ment company, the employee(s)must submit their completedpersonal history statement andtwo complete sets of finger-prints, and the licensee mustsubmit a copy of the manage-ment agreement, to the Divisionwithin 30 days of the date ofhire.

This is accomplished usingthe Division’s Form 30, entitled“Business Statement.” If youare among two or more man-agers, you must know that allmanagers must comply withthese conditions.

Montana’s gambling policyrequires “a uniform regulatoryclimate that assures players,owners, tourists, citizens, andothers that the gambling indus-try in this state is …not influ-

enced by corrupt persons ….”Mont. Code Ann. § 23-5-110(1)(a). Management employ-ees, due to their positions oftrust, access, and control, mustmeet the same suitabilityrequirements for gamblinglicensure as does the licensee.

Management employeesmust therefore submit finger-prints and personal historystatements so that the Divisionmay conduct a backgroundinvestigation to determine theemployee’s suitability.

After reading this, you eitherfeel good about your manageri-al job because you have allyour ducks in a row, or youhave become nervous wonder-ing who is going to be knockingon your door soon. Don’t panic.If there are issues to be fixed,we want you to come to usbefore an investigator discoversit during an inspection.

We ultimately want you andthe licensee to be in compli-ance without undue hardship,so please contact us afterspeaking with your employerfirst, or if there are additionalquestions you can contact theLiquor Control Division at 866-859-2254 or the GamblingControl Division at 406-444-1971.

Montana Tavern Times – 8 April 2014

Charityfrom Page 1

eStopfrom Page 5

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ed by permanent walls from anybusiness not directly related tothat off-premises business. Thisincludes a separate, on-premis-es alcohol beverage business.• The must store all beer

and wine inventory on-site in anarea identified on the floor plan. On average, it takes the

department 45 to 60 days toprocess an application for aliquor license. We require anapplication to be processedwithin 45 days, but we maypause the days counted in theprocess time if we need torequest additional informationfrom the applicant. It’s impor-tant, then, for applicants to sub-

mit a complete application andto respond as soon as possibleto requests for documents orexplanations.If you qualify for and are

requesting TemporaryOperating Authority (TOA), beaware that the Department willgrant the TOA only after wereceive verification that the sell-er is in good state tax standingand the application includes theminimum required documents.

We are excited to providethe new eStop online capabili-ties and offer the Stand-Aloneand Sacramental Wine off-premises license types. Westrive to make the licensingprocess easier and more effi-cient for Montana so licenseescan focus on operating andgrowing their businesses.

$2,000, went to the HeritageChristian School to help rebuild itsgym. In addition, Duane Walkerreceived $1,991 for medical assis-tance.

Groups and individuals receiv-ing $1,000 were Zoe Turpin formedical assistance, Kelsi Slingsbyfor medical assistance, FamilyPromise Cardboard Box fundraiser,Belgrade Public Library, PattyEllison for medical assistance,Thrive Cap Program, and theGallatin Co. Food Bank.

The complete list of contribu-tors for 2013 GIFTS is below.

19th Hole GrilleBanana BayBlack Bear Bar & GrillBozeman BowlBroken Arrow Bar Buffalo Bar & CasinoBullwinkle's WestColonel Black's Cannery LoungeCat's Paw

Choppers Big Sky City Center SteakhouseClub 30Crystal Bar Eagle's Club #326Filling StationFirehouse/Lucky PalmsFriendly TavernThe GameGrizzly LoungeGusher PizzaHaufbrau Hideaway Lounge Hub BarJackpot Casino - Belgrade Jackpot Casino EastJackpot Casino WestKorner Klub Legion Club-BozemanLucky Lil's - Belgrade #1 Lucky Lil's - Belgrade #2Lucky Lil's - Bozeman #1Lucky Lil's - Bozeman #2Lucky Lil's - Four CornersLucky Lil's - Three Forks Lucky Lil's - Whitehall Magic Diamond - BelgradeMagic Diamond - BozemanMagic Diamond - LivingstonM.R. HummersMilkie's Pizza Mint Bar-WhitehallMixer's Molly Brown Old Chicago Old Faithful Bar/Stacey'sPlaza Bar Pony Bar PourhouseRocky Mountain Gaming Scoop Bar Sir Scott's Oasis Spectator's Sports Bar Teasers Wild West Pizza Zebra Club

Montana Tavern Times – 9April 2014

GERALD W. STEINBRENNER

MILODRAGOVICH, DALE, STEINBRENNER P.C.Attorneys

GERALD W. STEINBRENNER

(406) 728-1455Fax (406) 549-7077E-Mail: [email protected] www.bigskylawyers.com

P.O. Box 4947620 High Park Way

Missoula MT 59806-4947

Liquor License Transfers, Gaming Applications,Real Estate, Business Sales, and Estate Planning

— UPCOMING EVENTS —April 23 Central Montana TA dinner, Eagles, LewistownMay 2 Gaming Advisory Council, GCD office, HelenaMay 13 Yellowstone Tavern Assoc. dinner, Billings HotelMay 20-21 GIA Convention, Missoula, Broadway InnSept. 15-18 MTA Convention, GranTree, Bozeman

— STANDING DATES —2nd Tues. of month Carbon/Stillwater TA 237-98441st & 3rd Wed. month Cascade Co. TA 453-9567Third Tue. of month Central Montana TA 868-4693Quarterly (call) Flathead Co. TA 270-80691st Thurs. of month Hi-Line TA 265-95512nd Wed. of month Lake Co. TA 883-25532nd Wed. of month Lincoln Co. TA 293-44932nd Tues. of month Miles City TA 234-31641st Tues. of quarter Missoula Co. TA 728-00303rd Thurs. of month Park County TA 222-0665Last Tues. of month Ravalli Co. TA 821-18532nd Thurs of month Richland Co. TA 433-43542nd Thur. of month Sheridan-Richland-Daniels 474-23582nd Wed. of month Silver Bow TA 494-6062Last Wed. of month Southwest Montana TA 835-21501st Mon. of month Toole Co. TA 434-24422nd Tues. of month Tri-County LBA 475-95601st Tues. of month Yellowstone TA 656-3991

Tavern TimetableStarbucks putting ‘bar’in barista nationwide

The AtlanticStarbucks just announced that

it will be shifting from sellingalcohol in a few select stores tounleashing it across the UnitedStates.

“We’ve tested it long enough inenough markets – this is a programthat works,” Chief FinancialOfficer Troy Alstead toldBloomberg. As well as beer andwine (though not hard liquor), thechain will also offer a line of fanci-er snacks, including bacon-wrapped dates, truffle macaroni-and-cheese, and flatbreads.

It’s just the next stage inStarbucks’ goal of getting cus-tomers to swing by not only in themorning, but at all times of theday.

When the chain shelled out$100 million for bakery LaBoulange in 2012, Chief ExecutiveOfficer Howard Schultz explainedto investors that “what LaBoulange is providing us wellbeyond the morning pastries andthe lunch is a significant platformto go after need states and day

parts well into the future.” Alcohol, which Starbucks

intends to sell in the evenings, willdraw customers with yet anotherneed state into yet another daypart.

“Anything that you see happen-ing here is driven by the question:what is the customer looking for?”Starbucks spokesperson AlishaDamodaran said. “When we thinkabout new product offerings in thestores, we always think about whatmakes customers come through ourdoors.”

The offer-more-things strategyseems to be working. Starbucksnow makes almost 50 percent moretransactions per hour than it didonly five years ago.

Alcohol is currently being soldin 26 locations across the UnitedStates, but it will spread to about40 by the end of the year, and toover 1,000 stores nationwide“eventually,” Damodaran said.

She says the company intends“to remain predominantly a coffeestore,” but it’s catering to manymore needs than caffeine these days.

Montana Tavern Times – 10 April 2014

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April 2014Montana Tavern Times – 12

Czech president wants to protect BudvarLiquor Biz

By Paul F. VangMontana Tavern Times

Milos Zeman, president of theCzech Republic made it clear:Keep Budejovicky Budvar brewerya nationally owned enterprise.

In a St. Louis Business Journalreport, drawing on a previousreport from the Prague DailyMonitor, Zeman said that Budvaris the only national company in theCzech Republic and it was made anational company in “order to pre-vent privatization by Americanconcern Anheuser-Busch.”

President Zeman doesn’t mincewords in saying that he thinksAnheuser-Busch, the U.S. divisionof A-B InBev, would lower thequality of Budvar, tellingAmericans, “You do not drinkbeer, even though you think so.You drink dirty brown water,which you call beer.”

California drought While there has been a lot of

coverage about the drought inCalifornia, even while long-over-due winter rains finally camealong, news came that makes itclear how serious the drought situ-

with Alka-Seltzer.”Climate change is causing

other concerns in the brewingworld. The report goes on to citestorms, droughts, heat waves andother extreme weather events thatreduced barley and hops crops inAustralia, England, New Zealandand Czech Republic.

A spokesman for New BelgiumBrewery, the company that makesFat Tire Ale and other brews,noted, “We make something, andit’s a deeply agricultural product.So, we are tied to the seasons, theproductivity of the land, and, ofcourse, water.”

The report concludes that cli-mate change also threatens otheragricultural products such as maplesyrup, chili peppers, chocolate andapple pie.

In a related story in Decanter,California wine producers antici-pate a poor wine grape crop in2014. In New Zealand, however,where fall harvest is just starting,growers are expecting bumpercrops.

Whiskey salesIn recent months we’ve report-

ed on surges in whiskey popularityand growing sales, and, of coursethe sale of American distiller BeamInc. to Suntory of Japan.

A feature article in Esquiremagazine also reports on the popu-larity of whiskey, and the shiftingof tastes.

“Ten years ago,” the articlesays, “everybody drank vodka, andScotch was something you keptaround for when your dad visited.Irish whiskey was otherwiseknown as Jameson, and it sat gath-ering dust in the back of the liquorcabinet, waiting for moments ofpersonal crisis. Bourbon was basi-cally a punch line.”

Now, whiskey sales are boom-ing, and much of the sales growthis in the expensive stuff, “juice thatwas put in a barrel years and yearsago, while the whiskey categorywas still in a downturn.” Sales ofsingle malt Scotch whisky havedoubled in the past ten years;super-premium bourbon sales havetripled.

Distillers in Scotland and theUnites States are ramping up pro-duction, though “You can’t justwhistle up 12-year old Scotch,” asone distiller puts it.

The concluding advice of thearticle is that if you’re attached to,for example, 18-year-old singlemalt, you’d better stock up.

“It isn’t going to get cheaper oreasier to find in the next five years.Unlike wine, whiskey stops aging

once bottled – so buy as much asyou can afford today, and keepsome stashed away for a rainyday.”

Schlafly name dispute Phyllis Schlafly has had a long

career as a conservative commen-tator, and possibly best known forefforts in the 1970s, to defeat theEqual Rights Amendment.

Tom Schlafly is PhyllisSchlafly’s nephew and a founder ofa St. Louis craft brewing company.

Fox News reports that TomSchlafly wants an exclusive rightto use the Schlafly name to sellcraft beer. Phyllis Schlafly, whohas made a career of disliking gov-ernment, is asking for governmentprotection, asking the Patent andTrademark Office to deny hernephew’s request, for fear that animplied association with beerwould sully her 60-year politicalcareer.

Hockey beer pricesHockey fans in Boise, Idaho,

often drink beer when they go tosee their home team, the IdahoSteelheads, play hockey atCenturyLink Arena.

At the beer counter, the signsays the price for a “small” beer is$4, while a “large” beer costs $7.The plastic cups and their priceshave been the same for at leastseveral years.

In early March, however, GwenGibbs and her boyfriend, HeathForsey, created a You Tube videoshowing a patron holding a largecup of beer and pouring it into anempty small cup. While the largecup is taller than the small cup,both cups appear to hold the sameamount of beer.

Idaho Steelhead officials wereembarrassed about the video, andordered new cups that hold 24ounces instead of the previous 20ounce cups that somehow hold thesame amount of beer as the“small” 16 ounce cup.

Another development, asreported by Fox News, is that sev-eral days after the You Tube videocame out, four fans filed suit inDistrict Court asking for $10,000damages for losses incurred whileattending sporting events at thearena for the last five years andfrequently shelling out $7 for theso-called large beer.

Eric Trapp, president of theIdaho Steelheads and CenturyLinkArena, wrote on the team’sFacebook page that the companyhad ordered 16-ounce and 20-ounce cups and never intended tomislead customers.

ation actually is: there may not beenough water to make beer.

In a report from ClimateProgress, an Internet site that mon-itors climate change news,California craft brewer LagunitasBrewing Company announced thatthe drought is threatening theRussian River, where they getwater for beer.

Lagunitas could possibly drawon groundwater to supplementdiminishing river water, though notwithout complications. Areagroundwater sources have a lot ofmineral content, such as nitrates,iron and manganese. JeremyMarshall, Lagunitas’ head brewersaid, “It would be like brewing

Montana Tavern Times – 13April 2014

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Montana Tavern Times – 17April 2014

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Tennessee whiskey battle getting spiritedWall Street Journal

If it isn't fermented inTennessee from mash of at least 51percent corn, aged in new charredoak barrels, filtered through maplecharcoal and bottled at a minimumof 80 proof, it isn't Tennesseewhiskey. So says a year-old lawthat resembles almost to the letterthe process used to make JackDaniel's, the world's best-knownTennessee whiskey.

Now state lawmakers are con-sidering dialing back some of thoserequirements that they say make ittoo difficult for craft distilleries tomarket their spirits as Tennesseewhiskey, a distinctive and populardraw in the booming Americanliquor business.

But the people behind JackDaniel's see the hand of a biggercompetitor at work — DiageoPLC, the British conglomerate thatowns George Dickel, anotherTennessee whiskey made about 15miles up the road.

"It's really more to weaken atitle on a label that we've workedvery hard for," said Jeff Arnett, themaster distiller at the Jack Daniel'sdistillery in Lynchburg, Tenn. "Asa state, I don't think Tennesseeshould be bashful about being pro-

tective of Tennessee whiskey oversay bourbon or scotch or any of theother products that we competewith."

Republican state Rep. BillSanderson emphasized that his billwouldn't do away with last year'slaw enacted largely on the behestof Jack Daniel's corporate parent,Louisville, Ky.,-based Brown-Forman Corp. The principalchange would be to allowTennessee whiskey makers to reusebarrels, which he said would pres-ent considerable savings over newones that can cost $600 each.

"There are a lot of ways tomake high-quality whiskey, even ifit's not necessarily the way JackDaniel's does it," Sanderson said."What gives them the right to calltheirs Tennessee whiskey, and notothers?"

Sanderson acknowledged thathe introduced the measure atDiageo's urging, but said it wouldalso help micro distilleries openingacross the state. Diageo picked upon the same theme.

"This isn't about Diageo, as allof our Tennessee whiskey is madewith new oak," said Diageo execu-tive vice president Guy L. SmithIV. "This is about Brown-Forman

trying to stifle competition and theentrepreneurial spirit of micro dis-tillers.

"We are not sure what they areafraid of, as we feel new innova-tive products from a new breed ofdistillers is healthy for the entireindustry," he said.

Jack Daniel's last year sold11.5 million cases of it BlackLabel last year, a 5 percentincrease from 2012. Dickel, thesecond-largest Tennessee whiskeyproducer, sold 130,000 cases in2013.

The standards and specialbranding of Tennessee whiskey arean outgrowth of the special desig-nation granted long ago to bour-bon. A half-century ago, Congressdeclared bourbon a distinctiveproduct of the United States. Bylaw, bourbon must be made of agrain mix of at least 51 percentcorn, distilled at less than 160proof, have no additives exceptwater to reduce the proof and beaged in new, charred white oakbarrels.

Spirits that don't follow thoseguidelines can't be sold as bour-bon. One example is Brown-Forman's own Early Times, whichis marketed as a "Kentucky

whisky" because it is made inreused barrels.

Billy Kaufman, the presidentShort Mountain Distillery inWoodbury, Tenn., said it is moredifficult to distinguish spirits notmeeting the Tennessee standard.

"If I made whiskey inTennessee in a used barrel, what itwould be called then?" he said."Whiskey, made in Tennessee?"

David McMahan, a lobbyistrepresenting Dickel and PopcornSutton Distilling, said the lawpassed last year would require allTennessee whiskies to taste likeJack Daniel's.

"It's not unlike if the beer guys25 years ago had said all Americanbeer has to be made likeBudweiser," McMahan said.

Whiskey is clear when it goesinto the barrel. It's during the agingprocess that the whiskey acquirescolor and flavors. Jack Daniel'sArnett said other distillers reusingbarrels might resort to using artifi-cial colorings and flavorings thatwouldn't match the quality of thewhiskey stored in new barrels.

"We've been making whiskey along time, and we know that wouldnot uphold the quality that peopleexpect from Tennessee whiskey."

April 2014Montana Tavern Times – 18

LICENSES FOR SALE

LICENSES FOR SALE

BUSINESSES FOR SALE BUSINESSES FOR SALEBUSINESSES FOR SALE

Just $4.50 per line

[email protected]

MTT • Buy • Sell •Trade

The world famous East Side Bar& Grill and Cowboy Casino inBelt, MT, is offered for private saleto the right, qualified buyer. Provendrop, revenues and profits. CallMatt, 406-781-9474. Seriousinquiries only.

EQUIPMENT TO BUY, SELL

THE OLD SALOON AND LIVERY STABLE STEAK HOUSEHistorical Bar/Restaurant withLiquor/Gaming license, Real Estateand FF&E located 20 miles from theNorth entrance to Yellowstone Park.sits on 1.2 acres. Price reduced to$650,000. Possible owner financing.Call Dave Everett, 406-600-0647.

Downtown Kalispell Casino with a 10% Annual Return

Well established casino in the heart ofKalispell’s high traffic area with anexclusive “Players Club” clientelelist. Montana State Beer and WineLicense (w/state approval), 20 ownedgaming machines, full commercialkitchen, 3,245 SF building, newlypaved parking on half acre lot, plusall the furniture, fixtures and equip-ment. Room for expansion/growth fora higher return on your investment byadding a poker room and an operatingkitchen/restaurant and bar. Call Tomat 5 Star Realty, 406-862-1000.

All beverage floating liquor licenseavailable for immediate sale. Able tofloat to counties and towns wherequotas have not been reached. Thereare towns near the Bakken where thislicense can be moved to. Pleaseinquire at [email protected],406-219-1141 or 406-600-2578.

The Hideout Bar & RestaurantGreat food, river views. All-beverageliquor license. Casino ready. $550KBob Pauley, broker. 406-369-0210

Great business for salein Livingston, Montana

Bar/Liquor Store combination,includes kitchen! One of the topliquor-selling businesses in the state!Sale includes liquor license, realestate and equipment! Great incomeproducing property ...

Call PEDE at (406) 570-1541or [email protected]

Billings all beverage liquor licensewith gaming. $700,000. Seller mayfinance $500,000 over 20 years OAC.Call 406-672-4434.

Great Falls full liquor license withgambling. Call 406-781-9072.

Missoula all-beverage liquor license.Call Sharon Rhodes, 406-542-8169.Leave a voice mail.

Whitefish Restaurant Beer/WineLicense (Cabaret) #07-937-2561-401.$40,000. Contact Alan Elm, (406)253-0724.

Beer and wine license for sale for usein the Great Falls area. $250,000.Marie Willson, Realtor, at 406-868-8900 or email at [email protected]. Dahlquist Realtors.

All beverage floatable liquor license.Will sell with bar, with gaming or sep-arately. 406-323-2347.

Six gaming machines for sale:4 classic Royal Touch, 2 GamblersEdge. $1,500 OBO. 406-236-5406

24" Gasser casino chairs, black stack-ing chairs, black bar stools, buddybars, square dining tables and pizzaoven. Call Dan, 406-861-5608

Missoula city all-beverage liquorlicense. Motivated seller. 406-370-0146.

FULL MOON SALOONHISTORICAL STEVENSVILLE

Where everybody knows your name.Full liquor, gaming, catering, café andbingo licenses. A whole lot of fun!Price reduced! Call JoyceAnneJodsaas, 406-239-5726.

BAR, RESTAURANT, CASINOIN GREAT FALLS

22,000 SF building, 2.6 paved acres,2 complete bars, dance floor. Bestview in Great Falls, at I-15 inter-change adjacent to International air-port. Additional 6 acres available. Allbeverage license available. Excellent,proven income. 3 million replacementcost. $800,000. 406-781-9111.

Kalispell All-Beverage Liquor LicenseNo. 07-901-2541-001 for sale. CallMike Nissen, 406-752-4050.

All beverage floating liquor license.$20,000 or best offer. Currently inDillon. Call 406-925-2228.

BEN’S ARENA BAR & CASINODeer Lodge. Full liquor license withgaming. Great location. Selling due tohealth. $450,000. 406-846-1617.

RECENTLY REMODELEDHISTORIC PROPERTY

IN BEAUTIFUL WISE RIVERHistoric hotel, restaurant, 7 cabin and13 RV spot resort. The Wise RiverClub – a long-established fishing,hunting, and snowmobiling destina-tion in Montana – is for sale byowner. I am passing the realtor costson to you in savings. Liquor licensetransferable statewide (one of the fewleft in Montana), gaming license andyear-round clientel.701-640-9033 or 406-832-3258

Full-beverage liquor license withoutgambling. 495K. Serious inquiriesonly. 406-661-1426.

State liquor store in Polson, includingstate contract, inventory, property andbuilding. Call 406-260-8724.

Montana agency liquor store for sale.Serious inquiries only. From moreinformation call 406-949-4442.

WHITEHALL, MTConvenience store close to Lewis andClark Caverns. One liquor license andone liquor license with gaming. 35-space RV parking with amenities.Please inquire at 406-287-3274 [email protected].

City of Billings Beer and WineLicense with gaming. This licenseis ready to transfer! $350,000

Tremendous Location!!!Billings Bar, Lounge, Casino,Liquor Store. Includes AllBeverage License, 1.6 acres Land,3,745 sf building. Three incomestreams – excellent cash flow!$1,900,000Chuck Platt [email protected]/MAX of BillingsCommercial Division

Montana Tavern Times – 19April 2014

April 2014Montana Tavern Times – 20