1. MEMORANDUM
TO: Matt All, Chair
Kansas Lottery Gaming Facility Review Board
FROM: Board of County Commissioners,
Sumner County, Kansas
DATE: December 10, 2010
RE: Request for additional information
________________________________________________________________________
During its telephone meeting of December 7, 2010, the Kansas Lottery Gaming
Facility Review Board asked the local governing body to provide additional information
about the following issues in regard to the competing applications: 1) drainage and
flooding issues at the proposed sites; and 2) the status of local approvals, which includes
endorsement, zoning, permits and platting.
Drainage and flooding.
The proposed Global site near Exit 19 of the Kansas Turnpike has no drainage or
flooding issues. Indeed, this site is superior even to the other Exit 19 sites considered by
Sumner County in the first two rounds of this process.
The proposed Peninsula site nearest Exit 33 of the Kansas Turnpike is known as
Site A. Local residents continue to complain of drainage and flooding issues associated
with the site.
The proposed Peninsula site within the city limits of Mulvane (Site B) is two miles
east of Site A. Because Site B is within Mulvane’s jurisdiction, Sumner County has not
formally considered drainage and flooding issues associated with this site. However, it is
common knowledge that Site B lies directly adjacent to Cowskin Creek and is frequently
under water.
Endorsement.
The proposed Global site near Exit 19 is within Sumner County and has been
endorsed by the Sumner County Board of County Commissioners.
The annexation litigation, Sumner County v. City of Mulvane, case no. 101975,
was concluded in Mulvane’s favor on December 7, 2010, when the Kansas Supreme

2. Court denied Sumner County’s petition for review. Thus, the proposed Peninsula site
nearest Exit 33 of the Kansas Turnpike (Site A) is within the jurisdiction of Mulvane and
has been endorsed by the Mulvane City Council.
Peninsula Site B is within the city limits of Mulvane and has been endorsed by the
Mulvane City Council.
Zoning, permits and platting.
The proposed Global site near Exit 19 has all zoning and required permits in place.
The Mulvane City Council has zoned and approved a special use permit for
Peninsula Sites A and B. Platting is not yet complete for either site.
The actions of the Mulvane City Council in zoning and permitting Peninsula Sites
A and B are challenged in two lawsuits recently filed by Sumner County citizens in
Sumner County District Court. They are Sutherland, et al. v, Sumner County, Kansas, et
al., case no. 2010 CV 186 (Site A); and Sutherland v. City of Mulvane, et al., case no.
2010 CV 187 (Site B). The petitions filed in both lawsuits are attached for the Review
Board’s reference.
Both suits challenge the legality of the zoning and special use permits for Sites A
and B. Sumner County, its officials, and the City of Mulvane and its officials are named
defendants in the Site A suit. The City of Mulvane and its officials are named defendants
in the Site B suit. Answers to these two petitions are due later this month.
Peninsula’s experience with regulatory bodies in other states.
During its December 7, 2010, telephone meeting, there was some discussion that
the Review Board desired further information about the applicants’ experience with
regulatory bodies in other states where they do business.
In May 2010, the Iowa Racing and Gaming Commission rejected Peninsula’s bid,
along with Webster County Gaming, LLC, to operate a casino in Fort Dodge, Iowa.
According to published reports, factors at play in the denial were strong local opposition
to a casino, fear that the new casino would siphon revenue from existing casinos, and
allegations of improper funneling of campaign contributions from Peninsula, and others
involved in the casino bid, to Governor Chet Culver, who supported a casino in Fort
Dodge. A copy of the article is attached.
In fact, the allegations regarding improper campaign contributions appear to have
2

3. surfaced during a routine background investigation of the Fort Dodge application done by
the Iowa Racing and Gaming Commission. The allegations stem from Peninsula’s
payment of a $25,000.00 consulting fee to three men who then contributed the same
amount to Culver’s re-election campaign.
On October 11, 2010, a special prosecutor in Polk County, Iowa, filed criminal
charges against M. Brent Stevens, chief executive officer of Peninsula Gaming; Jonathan
Swain, Peninsula’s chief operating officer; Curtis Beason, a lawyer for Peninsula; and
Peninsula Gaming itself, along with one other man and another gaming entity. They were
charged with making a campaign contribution in the name of another and willful failure
to disclose a campaign contribution.
Peninsula’s lawyer, Beason, was also charged with one count of obstruction for
allegedly providing investigators with altered documents that contained false statements.
The charge also alleges Beason provided false statements to law enforcement officials.
The campaign finance charges are serious misdemeanors, carrying a maximum
sentence of one year in jail and a $1,875.00 fine. The obstruction charge against Beason is
an aggravated misdemeanor, carrying a maximum sentence of two years’ imprisonment
or one year in jail and a $6,250.00 fine.
Stevens, Swain and Peninsula entered not guilty pleas at an arraignment on
November 1, 2010 in Polk County, Iowa. A trial date was initially set for January 5, 2011.
On Tuesday, November 30, Stevens, Swain and Peninsula asked the Court for more time
to complete pretrial discovery and now seek to push the trial date to March or April 2011.
On Wednesday, December 1, Stevens told this Review Board that he looked forward to a
resolution of the criminal charges “very, very soon.”
The former chair of the Iowa Racing and Gaming Commission, Diane Hamilton,
was quoted in the Des Moines Register as stating that if Peninsula is found to have acted
improperly, it could jeopardize the company’s existing Iowa gambling licenses. A copy of
the article is attached for the Review Board’s reference.
On Wednesday, December 1, Stevens told this Review Board that even if he and
others were convicted of the charges, those convicted individuals would step aside and
the project would move forward. This assertion ignores the fact that Peninsula Gaming as
a corporate body – not just its executives – has been charged with crimes. Peninsula
Gaming can hardly “step aside” without collapsing this project.
Another reality is that the criminal charges compromise Peninsula’s ability to
finance the project it proposes. The mere existence of criminal charges calls into question
3

4. whether Peninsula will be able to secure $50 million in financing. Criminal convictions
would likely eliminate Peninsula’s access to the credit market. Criminal convictions could
also jeopardize Peninsula’s licenses in Iowa and Louisiana and eradicate the cash flow
from those operations needed to finance this project.
Summary: risks vs. benefit.
The significant risk of Peninsula’s disqualification outweighs any benefit of
selecting Peninsula over Global. While the Review Board may not wish to usurp the
perceived role of the Kansas Racing and Gaming Commission in completing background
checks on the applicants, it must weigh the risks associated with approving Peninsula’s
application. If Peninsula cannot pass the background check at this time, or if matters
unfold in the Iowa criminal case such that Peninsula is later disqualified – or facing
disqualification, chooses to withdraw – this process must start anew for a fourth time.
Another year (or more) of gaming revenue will be lost. Other applicants may not return.
There is no benefit to approving Peninsula’s application which outweighs the
obvious and significant risks.
4

17. Des Moines Register Staff Blogs » Charges filed against casino execs, others over Culver ... Page 1 of 4
- Des Moines Register Staff Blogs - http://blogs.desmoinesregister.com/dmr -
Charges filed against casino execs, others over Culver campaign
contributions
Posted By Tom Witosky On October 11, 2010 @ 8:20 pm In Iowa Politics Insider,News | No
Comments
Two casino executives, a Davenport lawyer and a Fort Dodge businessman were charged
Monday with making illegal campaign contributions to Gov. Chet Culver’s re-election campaign.
The charges were filed in Polk County District Court by Lawrence Scalise, special prosecutor in
an investigation into $25,000 in campaign contributions to Culver’s campaign in 2009. The
contributions were made at a time when the Iowa Racing and Gaming Commission was
considering a casino license application for Fort Dodge, in Webster County.
The filing of criminal charges regarding campaign contributions in Iowa is rare, said Charles
Smithson, executive director of the Iowa Ethics and Campaign Disclosure Commission. This is
the first time it has happened in his nine-year tenure, he said.
The Des Moines Register first reported in April that the Iowa Division of Criminal Investigation
was looking into whether Dubuque-based Peninsula Gaming Partners had aligned with
supporters of the proposed Fort Dodge casino to make improper contributions to Culver.
Webster County Gaming was the official applicant for the Fort Dodge license. Its management
firm, Webster County Entertainment, was negotiating with Peninsula to have Peninsula operate
the proposed casino.
In Iowa, it is illegal to make, or knowingly receive, a political contribution in another’s name.
No charges were filed against Culver or anyone involved with his campaign. Culver campaign
officials said last summer that the campaign had donated $25,000 to charity, one of the
methods allowed by law to dispose of questionable campaign contributions.The news, three
weeks and a day before Culver faces re-election, is good news for his campaign, Drake
University political science professor Arthur Sanders said.
Charged with making a campaign contribution in the name of another were M. Brent Stevens,
chief executive officer of Peninsula Gaming; Jonathan Swain, Peninsula’s chief operating officer;
Curtis Beason, a Davenport lawyer; Steven Daniel, the Fort Dodge businessman who headed
Webster County Entertainment; Peninsula Gaming; and Webster County Entertainment. They
also were charged with willful failure to disclose a campaign contribution.
Beason also was charged with one count of obstruction for allegedly providing investigators with
altered documents that contained false statements. The charge also alleges Beason provided
false statements to law enforcement officials.
The campaign finance charges are serious misdemeanors, carrying a maximum sentence of one
year in jail and a $1,875 fine. The obstruction charge against Beason is an aggravated
misdemeanor, carrying a maximum sentence of two years’ imprisonment or one year in jail and
a $6,250 fine.
The four men are to be arraigned at 8 a.m. Nov. 1.
Peninsula Gaming says it’s innocent of charges
Peninsula Gaming, a casino entertainment holding company with gaming operations in Iowa and

18. Des Moines Register Staff Blogs » Charges filed against casino execs, others over Culver ... Page 2 of 4
Louisiana, issued a statement denying the charges. The company operates the Diamond Jo
casinos in Dubuque and Worth County.
“Peninsula has, during its 11-year history, always adhered to the highest standards of
regulatory compliance and ethical business practices and has an impeccable record of
responsibility and excellence in the gaming industry,” the statement said. “We look forward to a
positive resolution of this matter.”
Daniel, a longtime Fort Dodge businessman, could not be reached for comment. He insisted to
Register reporters in April that the contributions were legal.
“I’ve never been told by Peninsula or anybody to make a contribution to Governor Culver,” said
Daniel, a tire shop owner who had been trying to land a Fort Dodge casino for 10 years.
Monty Fisher, Daniel’s lawyer, said Monday that he had not seen the allegations, “but I am
disappointed that my client has been charged.
Beason, who could not be reached for comment, argued in an April 8 memo that a $25,000
payment from Peninsula officials to Daniel’s management company, Webster County
Entertainment, was to pay for some of the group’s expenses as part of a deal to have Peninsula
manage the proposed Fort Dodge facility.
The Division of Criminal Investigation began looking at campaign contributions from supporters
of the Fort Dodge casino as part of its routine review of the backgrounds of applicants for casino
licenses. Daniel and two other partners in Webster County Entertainment, James Kesterson and
Merrill D. Leffler, contributed a total of $25,000 to Culver in late 2009.
Earlier that fall, Peninsula had paid the three men $25,000. Peninsula described the payment as
a consulting fee for their work on the project.
Kesterson and Leffler were not charged but are listed as prosecution witnesses.
Potential effect unclear on existing licenses
One question raised by the filing of the charges on Monday is whether Peninsula Gaming could
lose its state licenses to operate its two casinos.
The Diamond Jo Dubuque casino had gross gambling revenue of $68.4 million from 1.1 million
admissions for the year ending June 30. The Diamond Jo Worth County casino had gross
gambling revenue of $80.3 million from 1.2 million admissions.
State law requires that “a license shall not be granted if there is substantial evidence that the
applicant is not of good repute and moral character or if the applicant has pled guilty to, or has
been convicted of, a felony.”
The charges filed Monday are not felony counts. Members of the Iowa Racing and Gaming
Commission said it was premature to speculate whether they might take action against
Peninsula Gaming if the company and its executives are convicted of the allegations.
“ We need to see how this whole process plays out,” said Greg Seyfer, a Cedar Rapids attorney
who is the commission’s chairman.
Seyfer and Commissioner Paul Hayes of Urbandale both said they viewed the allegations as
isolated instances of problems in Iowa’s casino industry.
“We have been pretty tough,” Hayes said. “I think we have what we believe is a clean industry,

19. Des Moines Register Staff Blogs » Charges filed against casino execs, others over Culver ... Page 3 of 4
and we want to keep it that way.”
Fort Dodge Mayor Matt Bemrich, who has been a strong advocate of a casino license for his
community, said he was shocked to hear charges had been filed.
Bemrich said he hopes the allegations don’t hurt his city’s chances of seeking a casino license in
the future.
The Rev. Carlos Jayne, a United Methodist minister who has long fought Iowa’s gambling
industry, said the charges prove his long-held argument that the gambling industry eventually
leads to corruption.
“These guys get arrogant,” Jayne said. “They assume that they can do anything. … It wouldn’t
have made any difference if it were a Republican governor or a Democratic governor because
there was a license to be gotten.”
Culver: We knew we acted appropriately
In March, Culver urged the Racing and Gaming Commission to approve all four pending
applications for casino licenses. Ultimately, the commission approved only one license, for Lyon
County.
The Culver campaign issued this statement Monday afternoon: “We are pleased but not
surprised that the findings confirm what we have been saying all along. No one in my office or
my campaign did anything wrong; we complied with all campaign finance laws. ”
Culver trailed Republican former Gov. Terry Branstad by 19 percentage points in The Des
Moines Register’s Iowa Poll, taken Sept. 19 to 22.
The news comes not a minute too soon for Culver, said Sanders, the Drake professor, whose
study areas include the role of money and interest groups.
“The Culver people would be happy to have it brought up, and brought up now,” Sanders said.
“They can argue that they were acting honorably, as was found, and that anyone trying to bring
this up is simply smearing them. Culver is in a very defensible position.”
Court documents list Culver and James Larew, Culver’s chief of staff, as prosecution witnesses.
Branstad, who has regularly mentioned the investigation, continued Monday to suggest
impropriety.
“Iowans can draw their own conclusions about the circumstances surrounding this pay-for-play
scandal and whether or not this passes the smell test,” Branstad campaign spokesman Tim
Albrecht said.
— Staff writers William Petroski and Thomas Beaumont contributed to this article.
Article printed from Des Moines Register Staff Blogs:
http://blogs.desmoinesregister.com/dmr
URL to article: http://blogs.desmoinesregister.com/dmr/index.php/2010/10/11
/charges-filed-against-casino-execs-others-over-culver-campaign-contributions/

20. Des Moines Register Staff Blogs » Charges filed against casino execs, others over Culver ... Page 4 of 4
Copyright © 2009 Des Moines Register Staff Blogs. All rights reserved.

21. Format Dynamics :: CleanPrint :: http://www.desmoinesregister.com/apps/pbcs.dll/article... Page 1 of 1
contribution in another's name.
Peninsula Gaming officials
request 60-day trial delay No charges were filed against Culver or anyone
involved with his campaign. Culver campaign
By TOM WITOSKY • twitosky@dmreg.com • officials said last summer that they had contributed
November 30, 2010 $25,000 to charity, one of the methods allowed by
law to dispose of questionable campaign
Two Peninsula Gaming executives accused of
contributions.
making an illegal $25,000 contribution to Gov. Chet
Culver's re-election campaign have asked for a delay All four men and both companies were charged
of their trial. with making a campaign contribution in the name of
another, as well as willful failure to disclose a
The defense lawyer for M. Brent Stevens, Peninsula campaign contribution.
Gaming chief executive, and Jonathan Swain, the
company's chief operating officer, has requested a The charges are serious misdemeanors and carry a
60-day trial delay, court documents filed Monday maximum sentence of a year in prison and a $1,250
show. The defense needs more time to complete fine.
depositions and evaluate evidence, attorney Guy
Cook said. Beason also was charged with obstructing
prosecution. He allegedly caused "physical
Culver, who lost in his re-election bid earlier this evidence, that is, documents that would be
month, is scheduled to give a deposition to defense admissible in trial, to be altered, and then provided
lawyers on Dec. 17, Cook's motion stated. said altered documents containing false statements"
to investigators, records showed. That charge is an
James Larew, Culver's chief of staff and legal aggravated misdemeanor, carrying a maximum
counsel, is scheduled to be deposed on the same sentence of two years in jail and a $6,250 fine.
day, court records showed.
In his motion, Cook said a delay, which isn't
All of the defendants contend that the opposed by prosecutor Lawrence Scalise, is needed
contribution, which was solicited by Culver in because defense lawyers received the state's
November 2009 and paid in two $12,500 evidence last week.
installments by Steve Daniel, Merrill Leffler and
James Kesterson, was legal.
Culver's role in soliciting the contribution will be
used by the defense in an attempt to show that their
clients did nothing illegal, Cook said.
Stevens and Swain are scheduled to go on trial Jan. Advertisement
5, along with Daniel, a Fort Dodge businessman,
and Davenport lawyer Curt Beason.
The four men, along with Peninsula Gaming and
Webster County Entertainment, have been charged
with making the $25,000 contribution illegally to
Culver's campaign in late 2009. The contribution
was made at a time when the Iowa Racing and
Gaming Commission was considering a casino
license application for Fort Dodge, in Webster
County.
It was first reported in April that the Iowa Division of
Criminal Investigation was looking into whether
Peninsula Gaming of Dubuque had aligned with
supporters of the proposed Fort Dodge casino to
make improper contributions to Culver. In Iowa, it is
illegal to make, or knowingly receive, a political

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Both lawyers asked the judge to require prosecutors
Casino contribution defense to provide more specific facts about their clients'
cites '95 court ruling alleged wrongdoing.
By TOM WITOSKY • twitosky@dmreg.com • Cook said the charges failed to cite the particular
December 1, 2010 individual who made the illegal contribution and
which defendants aided and abetted in the
A 1995 Iowa Supreme Court decision could haunt
contribution.
prosecutors attempting to convict four men accused
of making an illegal contribution to Gov. Chet
Citing the Azneer case, Cook also argued that
Culver's re-election campaign.
prosecutors failed to provide any evidence that the
defendants willfully failed to disclose the
Defense lawyers cited the case involving Leonard
contribution to the Iowa Ethics Campaign Disclosure
Azneer, former president of Des Moines University,
Board.
in procedural arguments Tuesday designed to raise
questions about whether a special prosecutor has
In 1995, the Iowa Supreme Court ruled that Azneer
provided sufficient evidence to justify a trial.
could not be prosecuted for making illegal
campaign contributions unless prosecutors could
"There may be five volumes of evidence, but overall
prove that Azneer knew that it was against the law.
the evidence is skinny in this case," Guy Cook,
attorney for two executives of Peninsula Gaming, Azneer had admitted to receiving reimbursement
told District Associate Judge William Price. "There is from the university for $80,000 in political
a lot of paper, but the charges are unclear and contributions he made to state and federal
inconsistent." candidates from 1983 through 1992, but claimed he
didn't know those contributions were illegal.
But Richard McConville, one of the prosecutors
handling the case, said there is sufficient evidence The state charges against Azneer were dropped after
presented to take the case to trial and obtain the decision.
convictions.
Cook said the same evidence is required against the
"The evidence shows there was intent to make an
defendants in the Culver case because the statute
illegal political contribution and not to disclose
requires proof that the action taken was willful.
who actually was making the contribution,"
McConville said.
"That decision is clear," Cook said. "You must prove
a defendant in case like this was aware of the statute
Cook represents M. Brent Stevens, Peninsula
and intended to violate it."
Gaming's chief executive, and Jonathan Swain, the
company's chief operating officer. They are
scheduled to go on trial Jan. 5, along with Fort Advertisement
Dodge businessman Steve Daniel and Davenport
lawyer Curt Beason.
The four men, along with two companies, Peninsula
Gaming and Webster County Entertainment, have
been charged with illegally funneling a $25,000
contribution to Culver's campaign in late 2009. All
four men and both companies have pleaded not
guilty to charges they aided and abetted the making
of a campaign contribution in the name of another,
as well as willful failure to disclose a campaign
contribution.
But Cook and Monty Fisher, Daniel's attorney,
raised a legal question that brought up the Azneer
case in contending that the charges are not specific
enough to warrant a trial.

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But McConville expressed confidence that the
charges against the four men were appropriate.
He said the money was illegally funneled into
Culver’s campaign when Peninsula Gaming paid
$25,000 to Webster County Entertainment. That
money was then directed to Culver’s campaign by
Daniel, a co-owner of Webster County
Entertainment, and two of his partners.
“The evidence shows that money was paid to a
campaign that didn’t actually come from the people
who actually were making the contribution and that
any reporting of those contributions didn’t disclose
the actual contributor,” McConville said.
The contributions were made at a time when the
Iowa Racing and Gaming Commission was
considering a casino license application for Fort
Dodge, in Webster County.
All four defendants attended Tuesday’s hearing.
Advertisement

24. Iowa gov possible witness in casino campaign case - News - CNBC.com Page 1 of 1
Iowa gov possible witness in casino campaign case
The Associated Press | 07 Dec 2010 | 01:33 PM ET
DES MOINES, Iowa - Iowa Gov. Chet Culver may be called to testify in a criminal case against four people and two casino groups accused of illegally donating
money to his re-election campaign, according to court documents filed this week.
Culver was among 11 people listed as possible defense witnesses in the case against Peninsula Gaming LLC, its chief executive officer Martin Brent Stevens, its
chief operating officer Jonathan Swain, Webster County Entertainment and its chief supporter Steve Daniel and Curtis Beason, a Davenport attorney. The men
and their companies are charged with violating campaign disclosure laws. Beason also faces one count of obstruction.
They are accused of making illegal contributions to Culver's campaign by donating money in the name of another person. It is illegal in Iowa to give or receive
political donations in someone else's name.
"Neither the Governor nor the Culver-Judge Campaign were ever the subject of this matter," Culver's office said in a statement released Tuesday. "However,
every effort will be made to fully cooperate with the process until this situation is resolved.
Guy Cook, the attorney for Peninsula Gaming, its executives and Beason, filed the witness list on Monday in Polk County District Court. A telephone message
left for Cook was not immediately returned.
Other names on the list include former Iowa Attorney General Bonnie Campbell, Dubuque Mayor Roy Buol, other Peninsula Gaming officials and Dennis Gomes,
president and CEO of Gomes Gaming Inc., of Atlantic City, N.J.
The case is set for trial Jan. 5, but both sides have asked for more time to prepare.
Cook also filed a motion Monday seeking an extension for filing pre-trial motions to no sooner than Feb. 14 and seeking a trial date in March or April.
At issue is a $25,000 campaign contribution to Culver's campaign.
Those charged with breaking contribution disclosure rules had submitted an application for a casino in Fort Dodge, one of four proposals submitted to the Iowa
Racing and Gaming Commission. Culver supported all four applications, saying they would create jobs, but the panel rejected the Fort Dodge application as well
as casinos proposed in the city of Ottumwa and Tama County.
The panel approved one in Lyon County.
After questions about the donation were raised, Culver donated the money to charity.
The charges were filed in Polk County by special prosecutor Lawrence Scalise, who was appointed by Iowa Attorney General Tom Miller to investigate the
claims.
In filing the charges, Scalise issued a short written statement that said there was no evidence of any wrongdoing by anyone other than those named,
apparently clearing Culver of any wrongdoing.
Culver solicited campaign contributions from some of the people involved in the casino projects but said he did nothing wrong in the fundraising and later
released a statement that said the charges made it clear that neither he nor is staff violated any laws.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
URL: http://www.cnbc.com/id/40552471/
.
© 2010 CNBC.com