Vol. 24, Number 8 A Tash Communications Publication July 2019

Endorsed by the

PRSRT STDU.S. POSTAGE

P A I DPermit No. 93Livingston, MT

Change service requested: P.O. Box 4307, Butte, MT 59702

paul@tashcommunications.com 406-494-0100

Could be runningby end of year,Council told

Montana Tavern TimesAn effort by the gaming indus-

try to override a veto of SenateBill 330, the sports-betting measurethat would have allowed privatecompanies to operate sports bet-ting, failed on a vote of 74-39 lastmonth.

Industry representatives said asimilar proposal could be intro-duced in the 2021 legislative ses-sion.

“It was very disappointing thatthe landscape for allowing tradi-tional sports-betting options withworld-class providers was passed

with strong bi-partisan supportthrough the Legislature, thenvetoed by our governor,” said SteveArntzen, president and CEO ofBillings-based Century Gaming,one of at least three Montana com-panies that had partnered with dif-ferent global sports books to runsports betting as outlined in SB330.

“Century will most certainly besupportive of efforts to run sportsbetting through private and provensports book providers again in thenext legislative session,” he added.

Lottery readies sports betting

By Jorie TashMontana Tavern Times

The Montana Lottery is “start-ing to move forward” on develop-ing a sports-betting system forMontana that should be ready“towards the end of the year,”Lottery representative BryanCostigan told the GamingAdvisory Council (GAC) lastmonth.

Legislation passed in the recentlegislature allowed the MontanaLottery to operate and regulatesports betting in the state’slicensed gaming establishments.Other legislation allowing privatebusiness to also operate sports bet-ting passed overwhelmingly, butwas vetoed by Gov. Steve Bullock(see related story on Page 1).

Control rulingControl ruling–– Page 3Page 3

Failed veto override haltsindustry-run sports betting

Nominations openfor MTA awards

MEMBERS OF state’s Gaming Advisory Councillisten to discussion June 21 in Helena. They are,from left, Chairman Mark Kennedy, GCD

Administrator Angela Nunn, Carole Lankford,Rep. Wylie Galt, Mike Kenneally (hidden), andSteve Morris.

Jorie Tash photo

“We want to make sure we’redoing it right” and avoid a rush,said Costigan, adding that Lotteryis increasing staff to work onsports betting.

Additionally, Costigan said theLottery has amended its contract

with Intralot, the global companythat operates and manages Lotteryproducts for the state, so it canhelp develop and operate thesports-betting system. He said theLottery was not interested inallowing other companies to bid on

the opportunity to run sports bet-ting in Montana.

GCD updatesAngela Nunn, administrator of

the Gambling Control DivisionSee COUNCIL Page 8

See BETTING Page 7

The Montana Tavern Association is calling for nominations forits two major awards, the Durkee Award and the Worker of theYear Award.

The Durkee Award, created in 1997, is the MTA’s most presti-gious honor. It is to be presented “to one person, either posthu-mously or to a living soul, in recognition of their outstanding serv-ice, unselfish contributions of time and effort and dedication to thebetterment of the Montana Tavern Association, its members andgoals.”

The award is in honor of MTA’s late executive director, MarieDurkee, and her husband Bob, who advocated for associationmembers as the MTA lobbyist. To nominate a person for theaward, submit a written nomination, outlining how your nominee

See AWARDS Page 6

Montana Tavern Times – 2 July 2019

Montana Tavern Times – 3July 2019

Montana Tavern TimesA recent ruling by the Supreme Court of the

United States involving the 21st Amendmentcould weaken states’ ability to structure theirown beverage alcohol laws.

Industry representatives in liquor controlstates, including Montana, had been watchingthe court case, which had the potential to endan-ger quota systems. The 21stAmendment repealed the 18thAmendment (Prohibition),thereby providing morestate-control of liquor.

The Supreme Court’sJune 26 ruling affirmed bya 7-2 vote the 6th CircuitCourt of Appeals’ rulingin Tennessee Wine &Spirits Retailers Associationv. Thomas that foundTennessee’s durational-resi-dency requirements for retail andwholesale alcohol licenses are notprotected under the 21st Amendment. Themajority opinion, written by Justice SamuelAlito, opens the door for future challenges tostate alcohol laws, including possibly even basicresidency requirements that differentiatebetween in-state and out-of-state interests,according to an American Beverage Licensees(ABL) press release. The Court’s decision alsocreates uncertainty for retail beverage licenseeswho have long participated in the state regulato-ry systems that make up America’s alcohol mar-ketplace, the ABL said.

“It is disappointing that the Court did notrecognize the full weight of the 21stAmendment and the societal intent of the

Tennessee residency laws when balanced againstthe Dormant Commerce Clause,” said ABLExecutive Director John Bodnovich.

“While today’s decision is not what thosewho recognize the importance of a well-regulat-ed and orderly alcohol marketplace were seek-ing, beverage licensees must now recommitthemselves to working with state legislators and

regulators to adapt state-based alcoholregulatory systems that promote

public safety in a manner that fitswith the Court’s interpretationof the relationship betweenthe Twenty-first Amendmentand Dormant CommerceClause.”

Justice Alito’s majorityopinion noted, “That provi-sion [Section 2 of the Twenty-first Amendment] allows each

State leeway to enact the meas-ures that its citizens believe are

appropriate to address the public healthand safety effects of alcohol use and to serveother legitimate interests, but it does not licensethe States to adopt protectionist measures withno demonstrable connection to those interests.”

However, the majority opinion alsoacknowledged the limit of its ruling, observingthat, “Because we agree with the dissent that,under [Section 2], States ‘remain free to pursue’their legitimate interests in regulating the healthand safety risks posed by the alcohol trade, eachvariation must be judged based on its own fea-tures.”

In acknowledging the legitimate role thatStates play in regulating alcohol, the Court con-firmed “State law empowers the relevant author-

ities to limit both the number of retail licensesand the amount of alcohol that may be sold toan individual”; “the State could also mandatemore extensive training for managers andemployees and could even demand that theydemonstrate an adequate connection with andknowledge of the local community”; and “theState of course remains free to monitor the prac-tices of retailers and to take action against thosewho violate the law.”

In a strong dissent, Justice Neil Gorsuch,joined by Justice Clarence Thomas, raisedpoignant questions about the implications of theruling and the majority’s attempt to “‘rational-ize’ the law and impose our own free-trade rulesfor all goods and services on interstate com-merce.”

“What are lower courts supposed to makeof this? How much public health and safety ben-efit must there be to overcome this Court’s wor-ries about protectionism ‘predominat[ing]’?”asked Gorsuch. “Does reducing competition inthe liquor market, raising prices, and thus reduc-ing demand still count as a public health benefit,as many States have long supposed? And if resi-dency requirements are problematic, what aboutsimple physical presence laws?”

“In light of today’s ruling, and as we look towhat the future may hold for the retail alcoholcommunity, accountability, transparency andcompliance will be of the utmost importance,”said Bodnovich. “ABL and its members remaincommitted to working with state and local regu-lators to promote responsibility and are resolvedto be part of a beverage alcohol ecosystem thatpromotes a vibrant beer, wine and spirits mar-ketplace that safely serves customers and com-munities.”

Ruling hurts states’ liquor control

July 2019Montana Tavern Times – 4

Opinion/EditorialTavernTimes

Write usThe Montana Tavern Times welcomes letters to the editor. Lettersmust include the writer’s name and address. The word limit is 300.Mail to Montana Tavern Times, P.O. Box 4307, Butte MT 59702, oremail us at paul@tashcommunications.com. The Times reserves theright not to print letters it finds objectionable.

Check reporting discrepanciesBy Anne Gerken, GCD Communications

When tax estimate notifications arrive in your email this time ofyear, operators will be comparing their own records to ours.Hopefully, they are identical, but in the case of discrepancies let’sexplore what can be done to help.

Step 1: Tax-estimate comparisonCompare your own records, for each machine, to what is

reflected on the TAP tax estimate with this formula:Current In – Current Paid –

Previous In + Previous Paid =$____ x (.15)

If the formula produces anamount that doesn’t match theGCD estimate, it warrants adeeper look. See the stepsbelow for more information.

Although there are timeswhen the division reimburses alicensee for an overpayment oftaxes, if an audit reveals alicensee owes additional taxesbecause of a discrepancy, a latepenalty is applied. Reporting thecorrect meter readings andresolving discrepancies is a wayto avoid paying extra.

Step 2: Check service reportsIf your tax amount is different than your calculations, check to

see if there was service done to a machine during the quarter. Thefollowing reasons may be why the amount is different than yours:

Machine locked up/zeroed electronic meters – A machinemay have locked up and you were unable to print a good “beforelifetime” audit ticket for the service report. In this case, you arerequired to obtain the last good lifetime ticket printed prior to themachine locking up/zeroing. This is obtained from the lifetime auditroll or the ASD (audit storage device) from the machine. There mayhave been play in between the last good lifetime ticket and thezeroed ticket. This will cause a tax discrepancy.

Duplicate Service Reports – Electronic or soft meters may

have been reset, creating a need for a service report. If the sameservice report is entered twice, this will cause a discrepancy.

Incorrect “Before” Meters – If you enter all zeroes for the“before” electronic meter readings on a service report, the tax esti-mate will reflect a zero-tax due. Make sure to use the last good life-time meter readings before the machine zeroed.

Step 3: Check three-way reconciliationAccording to the Administrative Rules of Montana, a three-way

reconciliation is required for each machine. The rule states: “threetotals, actual cash, electronic

readings, and mechanical read-ings must be calculated and rec-onciled for the same time periodand must be completed at leastonce every two weeks”(23.16.1827 ARM).

On TAP, select the “MeterReadings with Reconciliation”link. Enter your electronic andmechanical meter readings andthe actual cash for eachmachine. Once you haveentered and submitted yourmeter readings and before youlog out of TAP, select the “VGMReports” link. Then select the“Meters w/reconciliation report”

link. This report will show you the meter readings you haveentered, and the tax due on the electronic and mechanical meterreadings. For any machine with a variance, double check the infor-mation you have input. You may have input a number/amountincorrectly. This can be fixed by editing your meter reading submis-sion. You’re not required to use the TAP reconciliation system andcould employ any method, such as a spreadsheet, logbooks, etc.

Soft (electronic) and hard (mechanical) meter readings shouldhave a matching tax value. If you print your electronic audit ticketsat a different time than you read your mechanical meter readings,this will cause a tax variance. A good habit is to print your electron-ic audit ticket, turn it over and handwrite the mechanical meterreadings on the back of the ticket. Never use the “admin hardmeters” that are printed on the audit ticket. Use only the actualmechanical meter readings that you handwrite from the machine.

“Cash” is determined by adding up all the money taken in bythe machine for the same time period as you record your electron-ic/mechanical meters. Your electronic “total in” meter and mechani-cal “bill in” meters should all be the same as your actual cash. Tofind your totals, please use the formula below:

Current hard (mechanical) “In” – Previous hard “In” = CashCurrent soft (electronic) “In” – Previous soft “In” = CashIf the difference of previous and current “In” meters is not equal

to cash, additional record keeping requirements apply. The rulestates, “any material difference must be documented and the rea-son for the difference substantiated.” Material difference is eitherfive percent of the total money placed in the machine during thattime (cash) period or $100, whichever happens to be less. Thus, ifthe difference (5% or $100) is due to gambling device malfunc-tion(s), the device(s) must be taken out of play, repaired and serv-ice form(s) submitted to the department before the machine is

Reporting thecorrect meter

readings andresolving discrep-ancies is a way toavoid paying extra.

Anne Gerken

Paul Tash, Editor/Publisher • paul@tashcommunications.comOffice phone: 406-494-0100 • Cell: 406-491-0100

Paul Vang, Contributing Writer • pfvang@bresnan.netPhone 406-494-5736

Ad Production • production@tashcommunications.com

Postmaster: Please send address change requests to P.O. Box 4307, Butte, MT 59702All 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 $35 for a year’s subscriptionto Montana Tavern Times, P.O. Box 4307, Butte, MT 59702.

Tavern Times Business and News Office:P.O. Box 4307, Butte, MT 59702

• TEL: 406-494-0100 • E-MAIL: paul@tashcommunications.com

A Tash Communications Publication

See METERS Page 5

Montana Tavern Times – 5July 2019

Opinion/EditorialTavernTimes

By Joel SilvermanSilverman Law Office

We all hear how important culture is to awork place, but rarely do we hear how agreat culture can influence the top and bot-tom line of your business.

I was recently reading the book TheLeadership Challenge by JamesM. Kouzes and Barry Posner.This book is read by many stu-dents in college business pro-grams around the country. Theycite a study that showed employ-ees who are not having fun attheir job will only give about 30percent effort on average.However, employees that saythey are having fun at their jobare giving 90 percent or moreeffort on average at their job –triple the effort with what seemsto be a simple adjustment.

I have been asking manyhospitality business owners inmy Business Video Blog Interviews, whichare posted on YouTube for free viewing,how they’re making their businesses a funplace to work. The answers so far havebeen all over the map.

Remember last month’s article aboutfinding the right employee? The first step isto be deliberate in your process. Creating afun working environment is no different.Why not create an event(s) that show howmuch fun it is to work with everyone on yourteam?

One bar owner I know closes down hisbar and takes his entire team on a fun floatdown the river with a barbeque at the end,every summer. I know of a sales companythat has a gong in its sales room, andeveryone gets to strike the gong when asale is made. Another restaurant has a

whiteboard where anyone can write a“thank you,” or give kudos to another teammember for a good deed done to helpanother team member, or quote a client thatgave a team member kudos for providingexceptional customer service.

Why do these little things work so well toboost employee morale and drive betterperformance at work? It’s really simple. Theold adage that honey attracts more fliesthan vinegar holds true to this situation.People want to be held accountable to a

standard, and everyone craves the verbalrecognition of a job well done. Amazinglyenough, if you can give employees anascertainable standard and give them theverbal boasting of a job well done, you willeven gain the reputation of having a fantas-tic place to work. The end result of creating

such an environment is that peo-ple will start knocking down yourdoor to work at your business,and customers will also feel thedraw to come to and stay longerat your business.

Can you see a way to driveemployee and customer satis-faction, which will also drivesales and profitability? Makeyour business a fun place andyou will begin to see the bene-fits of your team performing likeyou never thought possible.

Want to learn from otherrestaurateurs and bar owners?Watch the interviews of many

successful business people at the MontanaBusiness Vlog on YouTube. If you have anytopics or questions to be covered in futurearticles, obtain one of our books on EstatePlanning, Tax or Hospitality Business or ifyou would like to receive our monthlynewsletter, then please email me atjoel@mttaxlaw.com.

Joel Silverman is founder ofSilverman Law Office with offices inHelena and Bozeman. He can be reachedat (406) 204-5813.

Employees having fun can pay off

One bar owner Iknow closes

down his bar andtakes his entireteam on a fun floatdown the river ...every summer.

Joel Silverman

Metersfrom Page 4

returned to play. By filing theservice report, this substanti-ates the reason for the differ-ence. A Form 50, and support-ing documentation, must alsobe submitted to the departmentwithin 24 hours of the suspect-ed or confirmed malfunction.

Step 4: Meters out-of-bal-ance or incorrect input

Periodically, you mayreceive notification that yourelectronic meter readings areout of balance. This typicallymeans that you have entered ameter incorrectly. In this case,contact the division to verify theactual entry and correction ifneeded. Tax estimates gener-ated in TAP are based solely onsoft or electronic meters. If youhave entered an electronicmeter reading that is incorrect,the estimate will be incorrect aswell. It may be that the elec-

tronic meter readings are out ofbalance and service must bedone to clear these meters.

To ensure soft meters bal-ance, use the meter readingformula as shown below:

(In + Won) – Played = Paid-or- (In + Won ) – Paid = Played

(Paid + Played) – In = Won-or- (Paid + Played) – Won = In

Step 5: Zero tax dueMake sure to double check

any machines that show a“zero tax due” on the estimate.If your records indicate that youshould owe money on thismachine, contact the division.There are several reasons anestimate could show a zero-taxdue. It’s best to contact thedivision before you accept azero-tax due estimate to verifythe actual amount due.Underpayment of taxes on amachine will result in a latepenalty being applied.

Other remindersWhen entering your meter

readings online, make sure to

keep an eye on the date fields.• The “Quarter” field must be

set manually, as it automaticallypopulates with the previousquarter date. If you havealready entered your end of thequarter meter readings, makesure to select the correct quar-ter for your subsequent meterreadings.

• The “Report Date” fieldneeds to be entered using theaudit ticket’s date, not the dateof the meter reading’s submis-sion.

Glossary of termsMeter readings are two set

of meters for each machine(electronic and mechanical) thatwill include the four differentmeters:

• Bill In• Credits Played • Credits Won • Credits PaidElectronic meters (soft

meters) are generated by thesoftware inside the VideoGambling Machine -- picturethe brain or logic board. Always

enter the “lifetime” meters onthe audit ticket, never the “peri-od” meters. By rule, thesereadings must be reported formachines on Tier 2 systemseither weekly or every twoweeks (operator’s choice).

Mechanical meters (hardmeters) are the meter readingsthat are physically obtained byan operator opening themachine and looking at themeters. (Picture the meterreadings on your electrical boxon your house.)

Actual cash is the amountof money taken out of themachine during the same timeperiod the meter readings arecollected.

Three-way reconciliationis the process of calculatingand reconciling the amount ofmoney a machine takes in andpays out for a certain time peri-od.

For more information, con-tact the Gambling ControlDivision gcd@mt.gov,https://dojmt.gov/gaming/ or406-444-1971.

July 2019Montana Tavern Times – 6

— UPCOMING EVENTS — July 16 Tri-County Summer Daze BBQ, Fox Ridge, Helena Sept. 9-11 MTA Convention and Trade Show, Sidney Sept. 20 Gaming Advisory Council, GCD office, Helena

— STANDING DATES — 2nd Tues. of month Carbon/Stillwater TA 328-4807

1st & 3rd Wed. month Cascade Co. TA 453-9567 2nd Mon. of month Central Montana TA 366-9633 Quarterly (call) Flathead Co. TA 270-8069 1st Thurs. of month Hi-Line TA 265-9551 2nd Wed. of month North Lake Co. TA 844-3372 2nd Wed. of month Lincoln Co. TA 293-4493 2nd Tues. of month Miles City TA 234-3164 1st Tues. of quarter Missoula Co. TA 728-0030 3rd Thurs. of month Park County TA 222-0665 Last Tues. of month Ravalli Co. TA 821-1853 2nd Thurs of month Richland Co. TA 433-4354 2nd Thur. of month Sheridan-Richland-Daniels 474-2358 2nd Tues. of month Silver Bow TA 494-6062 Last Wed. of month Southwest Montana TA 835-2150 1st Mon. of month Toole Co. TA 434-2442 2nd Tues. of month Tri-County LBA 475-3125 1st Thurs. of month Yellowstone TA 855-0778

Tavern Timetable

Awardsfrom Page 1

fits the criteria of the award.Nominations can be for one personor a couple working together toachieve these goals. Nominationscan come from MTA members,employees, or community mem-bers

The MTA NominatingCommittee will review the submis-sions and choose the winner.

The Worker of the Year Awardis sponsored by the MontanaTavern Times to recognize theemployees who work so hard tomake the hospitality industry great.Nominations consist of a shortessay of no more than 250 wordsoutlining why the nominee is anexemplary example of a dedicatedand valuable worker, how manyyears of service have been ren-dered, what are the employee's out-side interests and who are his orher family members. Examples ofachievement, or courage and perse-verance in the face of adversity,should be included.

The award, created in 2006, isofficially known as the GaryLangley Memorial Worker of theYear award. Langley was a popular

SHILO BATTEN is thrilled to receive a plaque and$100 bill from Montana Tavern AssociationPresident Dax Cetraro after she was named the

2018 MTA Worker of the Year, during last year’sMTA convention in Missoula. Nominations are nowopen for this year’s award.

Ed Kemmick photo

long-time editor of the monthlytrade publication. The winner, whowill be selected by the MTANominations Committee, willreceive a specially created plaque,adorned with a bartender's jigger

and stir spoon, along with a $100bill.

Nominations for both awardsare due Aug. 9, and nominationforms are available on the MTAwebsite, www.mttaverns.org.

Winners will be revealed at AwardsBanquet at the 64th Convention inSidney Tuesday evening, Sept. 10,and will be featured in the post-convention edition of the TavernTimes.

Montana Tavern Times – 7July 2019

Bettingfrom Page 1

Century's agreement with thesports book management companyRoar Digital, or "playMGM," is along-term agreement that willbecome effective when sports bet-ting through private entitiesbecomes legal in Montana, he said.

Other Montana companies thathave agreements with a sports-book company include GoldenRoute Operations of Montana,which has partnered with WilliamHill, and Fleetwood Gaming,which has partnered withNewgioco Group, Inc.

Override efforts fell 27 votesshort of the 101 “yes” votesrequired from the combined cham-bers (67 from the House and 34from the Senate for two-thirds ofthe vote) to override Gov. SteveBullock’s veto. While the billreceived over 80 percent approvalin the Senate and House during itsjourney through the 2019Legislature, 24 legislators that ini-tially voted in support of the billchose to support the governor’sveto, while 28 legislators abstainedfrom voting in the mail poll over-ride altogether.

In his veto letter, Bullock wrotethat “sports betting is new to our

state. As many legislators andstakeholders have observed, unfor-tunately, a new market like thiscannot support sports wageringunder both systems at once. Forthe market to succeed, Montananeeds to enter the sports wageringmarket conservatively – adoptingonly one of the two models now.”

The model Bullock chose tosupport was House Bill 725, spon-sored by Rep. Ryan Lynch (Butte),

which gives the Montana Lotterythe power to operate and regulatethe activity through its manage-ment partner, Intralot. Lynch andSen. Mark Blasdel (Kalispell), whosponsored SB330, supported eachother’s measures and agreed thatmarket competition would allowthe bettor more choices.

The Montana TavernAssociation (MTA) and theGaming Industry Association sup-ported both bills, agreeing with thetwo main bill sponsors that compe-tition in the market would allowfor more attractive odds and achance for local route operators tobenefit from legalization.

“We would have preferred tosee them (both) become law,because we believe a larger marketwith many competitors would pro-duce the best possible product forthe consumer,” said John Iverson,MTA lobbyist, in a Tavern Timescolumn that appeared in the Juneissue. Industry officials say manyquestions remain about the upcom-ing Lottery system, such as thecompetitiveness of odds comparedto Vegas odds and those on theblack market and whether tavern

operators will receive a commis-sion similar to those they receivefrom selling other Lottery prod-ucts.

The legislative action followeda major decision by the U.S.Supreme Court in May 2018 thatstruck down a federal law prohibit-ing sports gambling and gavestates the go-ahead to legalize bet-ting on sports. The court ruled 6-3to nullify the Professional andAmateur Sports Protection Act, a1992 law that barred state-autho-rized sports gambling with theexception of Nevada.

Like SB 330 intended, HB 725restricts sports betting to licensedgaming locations, and betting willtake place on kiosks and mobileapplications that will only be oper-able onsite. The Montana Lotteryhas amended its contract withIntralot, the company that managesthe Lottery’s services, to also runits sports-betting operations.

The Lottery Commission willdiscuss sports betting at its meetingJuly 11 at the Lottery headquartersin Helena, and all Commissionmeetings are open to the public.

SEN. MARK BLASDEL introduces his bill tolegalize sports betting at a hearing before theSenate Business, Labor, and Economic Affairs

Committee in March in Helena. Senate Bill 330overwhelming passed both chambers of theLegislature, but was later vetoed.

Paul Tash photo

July 2019Montana Tavern Times – 8

Councilfrom Page 1

(GCD), updated members onlicense-renewal progress: 1,000 ofalmost 1,500 licenses renewalshave been submitted as of the June21 meeting, and half of those havebeen submitted online using theDept. of Revenue’s (DOR)TransAction Portal (TAP) service.Last renewal season saw less than40 percent of all filers using TAP,and the Alcoholic BeverageControl Division (ABCD) and theGCD alike hope to continue theupward trend in paperless submis-sion, Nunn said.

She also provided a rundownof the GCD’s quarterly statisticsfor the third quarter of Fiscal Year2019, numbers that can be found inthe May issue of the Tavern Times.She then informed the Council thatthe “GCD’s Frequently AskedQuestions (FAQ) webpage hasbeen updated over the last severalmonths to include more guidelinedocuments,” including guides toFraternal organizations, sports pooltemplates, and a credit gamblingguide, among others.

Gambling investigationsDave Jeseritz, chief of the

Gambling Investigation Bureau(GIB), briefed the council on theGIB’s recent activity around thestate. The bureau recently complet-ed 24 separate inspections in FortPeck, where they “had a very suc-cessful visit,” Jeseritz said.

“The issues (we found) werefew,” he said, “and we were verywell received.”

The GBI has expanded its pro-tocol to include more after-hourschecks and more inspections ofCalcuttas and poker tournaments.After 91 night visits conducted sofar in 2019, only four violationswere found, “which is prettygood,” Jeseritz said.

He also reported that theYellowstone Club case was “justabout wrapped up.” In fact, threedays after the meeting the Clubreportedly agreed to pay the state$370,000 in fines and license feesafter investigators uncovered theClub selling liquor illegally earlierin the year.

Neil Peterson, executive direc-tor of the Gambling IndustryAssociation (GIA), asked Jeseritzabout the most common gambling

violation he’s seen recently, towhich Jeseritz replied that themost prevalent recent violationswere found with raffles, bingo, and“location managers, which isalways an issue,” he said. Locationmanagers, or those acting as such,must be reported to the DOJ with-in a month of the manager or act-ing manager beginning duties.Guides to bingo, raffle andCalcutta protocol can be found onthe GCD site to ensure they’rebeing run properly.

Finally, he informed attendeesthat the GCD’s anonymous tipreporting, which can be used byanyone to report suspected lawbreakers in the alcohol and gamingindustries, has been updated, ashas information for law enforce-ment that can be found on theGCD website in the “Laws andRules” tab.

Beverage control Steve Swanson of the ABCD

provided the council with regulato-ry updates that began after passageof House Bill 35, referred to bySwanson as “the clean-up bill toSenate Bill 5 that addressed ahandful of issues.” SB 5 waspassed in 2017 to replace thestate’s old lottery system to obtainnew licenses with an online bid-ding process for potentiallicensees.

The clean-ups HB 35 providedinclude language that clarifieswhich licenses can be transferredand when, quota updates thataddress past issues with linesdrawn in areas such as Helena andEast Helena, language that protectsbanks from “irrevocable loans,”and the process for the electronicbid form used in upcoming alco-holic beverage license auctions.

Swanson also informed atten-dees that the ABCD is in theprocess of determining expectedpopulation growth for Missoula,Helena and Bozeman to decidehow many new licenses each citywill be eligible.

“It’s more than likely thatthose areas will be a part of ournext competitive bidding process,”which will probably take place inJuly or August, he said.

He also spoke briefly aboutHB 613, a measure that allowsretirement communities that fallunder the description of “continu-ing care communities” as definedby the state to apply for a license

that allows the sale of alcohol onpremises, and SB 119, the indus-try-approved “buzz-in” bill thatallows alcohol and/or gamblinglicensees to keep their doorslocked during business hours untila customer, law enforcement orGCD investigator needs access toprovide heightened security.Licensees must notify the DORbefore using such a system.

“There’ve been over 20licensees that have notified us” sofar, Swanson said, and “we’ve cre-ated an application form on ourwebsite.”

The form is titled ACS, for“Access Control SystemNotification.”

As for concession agreements,Swanson agreed with councilmember Steve Morris that therules are currently unclear, and it’s“something that has to be lookedat” before the upcoming session.

Horse racingTom Tucker, executive secre-

tary of the Board of Horse Racing,informed the council that the MilesCity Track, one of two currentlyoperating in Montana, “did a lot ofwork to their track, and (the year’sfirst race meet) went extremelywell.”

The Board will also be out ofdebt as of November of this year,three years ahead of the expectedrepayment plan.

After the passage of SB 183,which granted the Board of HorseRacing the opportunity to coordi-nate with the DOJ and the publicto execute Historical Horse Racingmachine legalization for the 2021session, the Board has begun thelearning process. Historical HorseRacing (HHR) machines resembleslot machines, and compile datafrom thousands of already-com-pleted races to determine winners.

“We’ll be learning how theseHHR machines can be implement-ed with existing video gamingmachines (VGMs), as well asworking on a timeline,” saidTucker, adding that “we need inputfrom the industry” to figure out thebest regulatory methods.

Problem gamblingBrad Longcake, executive

director of the Montana Councilon Problem Gambling (MCPG),reported that January through Maysaw about 600 claims, which isslightly fewer than the same timelast year, and that counselors havehad extra meetings lately, in hopesof getting the word out about theCouncil and reaching more ofthose who may be struggling withproblem gaming.

As the Montana Council onProblem Gaming is the only of itskind in the United States to relyfully on industry donations insteadof receiving funds from the state,

Longcake said the Council isworking to get more consistent,quarterly donations to continuetheir work. As far as a potentialincreased need for services aftersports betting implementation,Longcake reported he has beenspeaking with Angela Wong fromthe state Lottery and “workingwith her to figure out what that’sgoing to look like.”

For Problem GamblingAwareness Month that takes placein March, the MCPG sent out “anumber of different items” fromcoasters to posters, which wereprovided by Century Gaming,Golden Route Entertainment andTown Pump, to area gaming estab-lishments,

Bill Slaughter, a GAC memberand former law enforcement offi-cial, acknowledged the work theMCPG does in curbing gamblingissues that can cause sufferers tocommit other crimes if leftunchecked.

“Thanks for what you do,” saidSlaughter.

Legislative review“It was a busy session for gam-

bling legislation,” said JohnIverson, the Montana TavernAssociation’s lobbyist.

After giving attendees a run-down on the session process,Iverson took the time to “curbsome of the dice misconceptions.”The passage of HB 368, whichlegalized the dice game cee-lo aftera bust at the Butte Country Club,has caused some to be confusedabout which dice games are nowlegal. Shake-a-day games and cee-lo remain the only legal dicegames playable in licensed gam-bling premises in Montana, andpremises are not allowed to haveany stake in cee-lo games.

GAC appreciationAtty. Gen. Tim Fox attended

the meeting as a guest, andthanked the GAC for its hard workengaging with the legislativeprocess and “taking the time toserve on this Council.”

“We all argue about whatmakes good government,” saidFox, “but this is the epitome ofgood government. The work youdo is very important.”

He concluded by remindingattendees about his “open-doorpolicy for issues about Montana ingeneral” and referring to the gam-bling and tavern industry advocatesas “public servants that are the bestof the best.”

Additionally, the GAC wel-comed the newly appointed legisla-tive member Rep. Wylie Galt ofMartinsdale.

The GAC set its next quarterlymeeting for Sept. 20 in Helena atthe GCD headquarters. GERALD W. STEINBRENNER

MILODRAGOVICH, DALE, STEINBRENNER P.C.Attorneys

GERALD W. STEINBRENNER(406) 728-1455Fax (406) 549-7077E-Mail: fishlaw@bigskylawyers.com 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

Montana Tavern Times – 9July 2019

July 2019Montana Tavern Times – 10

By Jessica Thiefels, Next AvenueFamily-owned businesses

employ 60 percent of the U.S.workforce. But only 30 percent offamily businesses survive the tran-sition from first to second genera-tion ownership, with 12 percentsurviving the transition from sec-ond to third.

If you’re a family member in a

Tips to survive family-ownership changefamily business, follow these fourstrategies to bridge the generationgap and transition your companyfor the many generations to come:

1. Expose Youth to theBusiness at an Early Age

Early exposure is one reasonEmily Brereton is still working inher grandfather’s business,

Napkins-Only, based in San Jose,Calif. Berereton is a marketingcoordinator and third-generationemployee there.

“Growing up, I knew what myparents did. I followed them towork. I listened in on phone callswith clients. I developed a detailedknowledge of our product linewithout needing to be trained,”Brereton explains. “When I beganworking full-time, I didn’t requiretraining to get up to speed; I’dbeen following along the entiretime.”

If you can bring your childreninto the business at an early age,they’ll be familiar with the ins andouts of daily management andunderstand the hard work it takesto make a business successful.They don’t have to be working ata young age; simply being presentwill expose them to details woveninto their fabric as a member ofthe family.

2. Place Family Members inAppropriate Positions

When placing younger genera-tions into jobs in the family busi-

ness, put them in roles where theycan use their talents and skill sets.You’ll set them up for success byplaying to their strengths andweaknesses.

Michel Klein, author ofTrapped in the Family Business,explains that we often hear aboutthe three circles of the family busi-ness: ownership, management oremployee. He recommends addinga fourth circle: self.

“For a lot of people whoselives have been spent immersed inthe family business, [it’s] allthey’ve ever known,” Klein says.

So, Klein advises, ask youngermembers of your family whatmotivates them, and about theirvalues. Then figure out where theycan add the most to the businessand be themselves, feeling happyand engaged with their work.

3. Avoid NepotismJoseph Brito, Jr. is a third-gen-

eration president of his family-owned utility and constructioncompany, based in Rhode Island.He started riding with his dad inthe truck at age 12. But, Brito’squick to acknowledge, all familymembers in the business have hadto earn their way up, starting at thebottom – no handouts.

Brito describes the companypolicy as: “Come in through thedownstairs door, not the upstairsdoor.”

This means all family membersneed to earn their right to manage-ment and leadership roles. Theynot only spend parts of theircareers working at all positionswithin the company (includingentry-level), they get to knowevery employee and what each onedoes.

4. Don’t be Afraid ofDiversification

Family-owned companies thatthrive through multiple generationsare rarely the same businessesfrom founding to their currentstate. Most develop new practices,diversify their offerings and trynew avenues to evolve.

Brito said his father had confi-dence in him, which allowed theson to make changes to the familybusiness that then allowed forexpansion into new industries.

Adopt this growth mindset tosurvive, remembering that diversi-fication will put you ahead of thecurve. Many family-owned busi-nesses often resist change, to theirdetriment. According to a FamilyBusiness Survey, 67 percent offamily firms prioritize long-termgrowth, but only 21 percent priori-tize innovation, which is a keybridge to growth.

• Karaoke 7 nights a week 9 p.m. to 2 a.m.• Newest Poker, Keno and Line Games• Packaged Liquor To-Go• Great Drink Prices

Best Live Poker Action in Town in the Queen of Hearts Card Room.

crystalloungebillings.com

101 North 28th Street • Billings, Montana • 406-259-0010

Queen of HeartsCard Club

Montana Tavern Times – 11July 2019

July 2019Montana Tavern Times – 12

Corngate ripples reaching to courthouses Liquor Biz

By Paul F. VangIt’s five months since the Super

Bowl game and the Bud Light adsdissing Miller Lite and Coors Lightfor using corn syrup in the brewingprocess are still creating ripples.

In May, a federal court judgefor the Western District ofWisconsin issued a ruling partiallyin favor of Molson Coors in a law-suit against Anheuser Busch InBevfor false advertising and misuse ofMiller and Coors trademarks.

In a report posted online byFargo-Moorhead radio stationKFGO.com, the judge ruled thatAnheuser Busch had hoped toexploit confusion surrounding theuse of corn syrup in beer produc-tion.

MillerCoors, the U.S. branch ofMolson Coors, says that MillerLite and Coors Light do use cornsyrup, while Bud Light uses rice,to aid fermentation. But it main-tains that in the fermentationprocess, the yeast uses up the cornsyrup, so it isn’t part of the finalproduct.

The ruling bars AnheuserBusch from using specific lan-guage featured prominently duringthe ad campaign in any futurecommercials, print advertising orsocial media. However, it stillallows Anheuser Busch to continuerunning some of its corn syrup ads.

In other words, both companieswalked away from the courthouseproclaiming victory.

Nevertheless, hard feelingsbetween the big brewing compa-nies continue. As reported byChicagobusiness.com, MillerCoorsis sitting out on an industry-widecampaign to boost sales of themajor brewers.

The “brand-agnostic” effortwill begin this summer andincludes funding from AB InBevand Constellation Brands, brewerof Corona beer. MillerCoors is tak-

ing a pass. “We love the concept,” a com-

pany spokesman told Ad Age. “Weare all for anything that can lift thecategory. (However), we can’t re-engage on the campaign untilAnheuser Busch stops their catego-ry denigration campaign.”

Heineken USA is also on thesidelines until all major players areon board.

“In principle, we support thisinitiative,” a Heineken statementsaid. “Once everyone comes to thetable, of course we will be there.”

Meanwhile, the beer industrycontinues to lose share to wine andspirits. Beer sales volumes for theyear ending June 2 were flat, whilespirits sales increased nearly fivepercent.

AB’s craft beer salesAs we’ve reported many times,

the major brewers have beeninvesting in craft beers. Accordingto Beer Business Daily, AnheuserBusch InBev is leading in craftsales.

It isn’t all wins, however.Shock Top sales were down by100,000 barrels in 2018, and theirGoose Island subsidiary was down40,000 barrels. Still, Goose Islandand Shock Top, followed byElysian, Golden Road, Karback, 10Barrel, and Four Peaks are out-selling other major brewer-ownedcraft brands.

MillerCoors crafts, Blue Moonand Leinenkugel were down235,000 barrels in 2018.MillerCoors-acquired craft brands,Terrapin, Saint Archer, Hop Valleyand Revolver, grew double digitsin 2018, but not enough to offsetthe losses by Blue Moon andLeinie.

Constellation’s craft acquisi-tions of Funky Buddha and FourCorners barely grew last year, andBallast Point was down by 57,000barrels.

Lagunitas, of Petaluma,California, a subsidiary ofHeineken, broke the million-barrelmark in 2018, with six percentgrowth in volume.

Looking beyond beerAnheuser Busch InBev is look-

ing beyond beer for sales growth,according to a Financial Timesreport.

Michel Doukeris, head ofNorth America operations for thebig brewing company, talked toFT about new ventures, such asDrinkworks, a joint venture withKeurig Dr Pepper as a new oppor-tunity. The coffee machine-likedevice, now available in Missouriand being introduced in Florida,allows consumers to make cock-tails such as mojitos and margari-tas at home.

Other new products includeNaturdays, a mix of beer and pinklemonade, and ready to drinkcocktails produced by San Diego-based Cutwater, which AB InBevacquired this year.

At a recent investor day inNew York, AB InBev announced atarget to increase non-beer rev-enues in the U.S. to $1 billion.

Yellow Tail up for saleOne of Australia’s biggest

wine brands, Yellow Tail, could beup for sale, according to afr.com,

the online service of FinancialReview of Australia.

The Casella Family Brandscompany, the largest Australianfamily-owned wine company islooking at spinning off its entirewine business. The wine businessexports 12.5 million cases ofYellow Tail a year to over 50countries.

Income and boozeA new study indicates that

people with a higher education,and usually a higher income,spend more money on alcoholicbeverages. In a Marketwatch.comreport, the study indicates thatpeople with less than a high schooldiploma spend about $102 peryear on alcoholic beverages.Getting that high school diplomaraises booze spending to $276.People with a college degreespend about $760, and if they goon for a graduate degree, $992.

The increased income associat-ed with additional education seemsto be the major factor in beveragespending. Also, people with moreeducation and higher income aremore likely to participate in activi-ties that may involve drinking,such as dining out in restaurants,going on vacations or socializingwith coworkers.

Popular beers by stateTo wrap up this beer-dominat-

ed column, a polling company,AskMen, did a survey to deter-mine the best-selling beer brandsin each state. The results werepublished at Fatherly.com. Thereare some surprises, and I can’thelp but think the survey is cock-eyed as Idaho’s favorite brew is,supposedly, Mike’s HardLemonade.

For Montana, the favorite isStella Artois.

Stella? Really?

Montana Tavern Times – 13July 2019

July 2019Montana Tavern Times – 14

LICENSES FOR SALE

Floatable all beverage liquor licensewith gaming. Price negotiable. Call406-789-2208.

On-premise beer and wine license –gaming available – for sale inWhitefish, Montana. Priced to sell at$125,000 or make an offer. The opera-tion’s location has been sold, we arenot interested in moving the license tonew location, and would like a sale tobe completed early in 2019. Call Jeffat 406-868-4284.

One of Montana’s highest-rated steak-house/restaurants with successful &profitable 8 yr. proven track record.Beer/wine license. Corvallis, MT.Call Matthew Locati 406-381-3909.Gallatin Real Estate

BUSINESSES FOR SALE BUSINESSES FOR SALEBUSINESSES FOR SALE

Just $4.50 per line

1-406-494-0100paul@tashcommunications.com

MTT • Buy • Sell • Trade

DAVE'S 2019 TIPSFOR SELLING YOUR BAR My advice is simple. You’veundoubtedly worked very hardin your bar/restaurant over theyears. Pick someone who worksat least as hard, and totallyunderstands the hospitality busi-ness! Contact me for a free con-sultation, and I’ll explain howI’ll market your property.

Club Bar, Ronan, Mt.PRICE CUT - now $349,000!

Knotty Pine, Dillon, Mt.$389,999!

Bozeman Real Estate GroupDave Everett Realtor®

406-600-0647Dave@BozemanRealEstate.group

PRICE REDUCED!All-beverage liquor license withgaming & catering available inGreat Falls, as is entire alcoholinventory. $225,000 OBO. Ownermotivated to sell. Call 907-252-6493 or email goode@alaska.net.

Billing beer and wine license withgaming. – Bob Pulley, broker, 670-7947

Billings all-beverage liquor licensewith gaming. – Bob Pulley, broker, 670-7947

Floatable All-BeverageLiquor License

Gaming included in Havre, MT Call or text for details.

Kacie Mack, REALTOR®Lodestar Land & Home

406-930-2541

Cart Wheel Casino & Liquor Store – 1900 10th Ave S – Great FallsTurn-key casino & liquor store. High roadway traffic – approx. 40,000 vehicles per day. The growingUniversity of Providence is one block away. Room to expand with live poker & new Montana laws allowingsports betting & live dice games. Sale includes land, building, liquor license, FF&E. $1,375,000.

Dawn McKenney, Realtor ®Keller Williams Realty406-868-3209

K-Bar Grill and Steakhouse, 13 W Legion St., Whitehall

The only restaurant in town open for breakfast, lunch and dinner, 7 days a week! Private area for gaming machines and another private area for 2 pool tables. Turn-key business ready for a newowner. Walk right in and keep the business as is or add your ownmenu and bar ideas. $335,000

Blue Moon Saloon, Cameron, MT

The historic restaurant, bar, store,cabins and campground is beingoffered turn-key ready! Located in Cameron, MT, the Blue Moonis a place where locals gather,enjoying Friday night prime rib, Saturday night dances or just relax-ing as they share a brew. Six cabins (remodeled 2016), employeehousing, onsite laundromat and more. Close to Yellowstone!

Restaurant Beer/Wine license inHamilton. Call 406-546-9995.

State of Montana Agency Liquor Store for sale

Store located in a YellowstoneNational Park (YNP) gateway resorttown. YNP had over 4.1 million visi-tors in 2017. Contact Joel Silverman,406-449-4829 or joel@mttaxlaw.com.

Upper Level Street View Lower Level

Owl Lounge, LivingstonIconic Owl Lounge in Livingstonhas been completely renovatedand runs like a well oiledmachine! Great opportunity foranyone wanting their own busi-ness. Remodeled in 2013 withcontinual upgrades in the past 5years, including A/C units in2018. Back portion of lot can beused as a patio during summermonths with removable fencingprovided. Complete list ofupdates/improvements available.Includes building, business, cityall-beverage liquor license, FFE.$879,000. MLS#330473

Agent owned.Lisa Schwarz,

broker associate,406-224-7273

DOT MERRILL, Broker BHHSMT - Ennis406-570-9067dotrealestatemt@gmail.com

Bear Creek Saloon – Bearcreek, MTVery popular turn-key restaurant and barin Bearcreek, MT. Famous tourist attrac-tion with summer pig races. Beautifulantique bar and stage. Sale includes allFF&E, Red Lodge all-beverage liquorlicense with gaming. Listed at $499,000.

Grizzly Bar – Roscoe, MTFamous Montana steakhouse (50-plusyears) in Roscoe, MT. Excellent financials.All-beverage liquor license with gaming.Additional land and buildings included.Sale includes all FF&E. Listed at$799,000.

Bull ‘N’ Bear Saloon – Red Lodge, MTTurn-key bar, casino, and restaurant in RedLodge, MT. Well established business (40-plus years). All beverage liquor license withgaming.10,000 SF building with grand ball-room upstairs. Sale includes all FF&E.Listed at $1,389,000.

Tyler Samson, NAI Business Properties 406-671-8257tsamson@naibusinessproperties.com

Tyler Samson, NAI Business Properties 406-671-8257tsamson@naibusinessproperties.com

Tyler Samson & Ron Elkin, NAI Properties Tyler, 406-671-8257 Ron, 406-670-8935tsamson@naibusinessproperties.comrelkin@naibusinessproperties.com

Montana Tavern Times – 15July 2019

VGMs for sale: Epic & MTD $7,000each (like new with less than $40,000in play). Casino King Upright withupgraded base $2500. Royal Touchslant $1,000. All prices OBO. CallJason 406-295-4358.

Four-door glass cooler, draft-beercooler that holds 2 kegs, under-the-barcooler (all coolers work great), icemachine, 4x8 Valley pool table withaccessories, and 20 chairs. Buy indi-vidually, or as a group for $2,500.Call 406-323-2347 (leave message).

Location, Location, Location!Brewski’s Sports Bar & Casino inHamilton with a city all-beverageliquor & casino license included.Rare find! Call Matthew Locati 406-381-3909.

Just $4.50 per line

1-406-494-0100paul@tashcommunications.com

MTT • Buy • Sell • Trade

The Betsy Sports Bar and Casinoin Townsend is available to rent.Contact Townsend Properties at406-461-2534

EQUIPMENT FOR SALE EQUIPMENT FOR SALEBUSINESSES FOR SALE BUSINESS TO RENT

July 2019Montana Tavern Times – 16