Galaxy Gaming CEO Reassures Shareholders After Regulatory Denial
Posted on: July 24, 2013, 05:30h.
Last updated on: July 22, 2013, 11:06h.
A Nevada-based casino table games developer, manufacturer and distributor is trying to reassure worried shareholders after the company’s California “suitability to do business” rights were revoked by that state’s Gambling Control Commission recently.
Galaxy Gaming CEO Robert Saucier has sent out a four-page missive to investors, claiming that all the issues decried by the California regulators in their decisions stemmed from a “predecessor entity that ceased business operation in 2009 and dissolved. The proceedings did not directly involve Galaxy,” Saucier went on, adding that “it is business as usual [at Galaxy ] as we continue to provide our products and services without any interruption.”
With Galaxy doing a lot of its business in the Golden State – especially with many Indian tribes who have casinos – Saucier wanted to assure customers and investors that Galaxy’s “gaming license with California tribes is unchanged and in good standing. Likewise, our status in all other jurisdictions we serve is also unchanged and remains in good standing. In fact, we continue to seek and acquire new licenses and approvals in additional jurisdictions,” the letter went on to say.
And this is where things get, um, a little confusing. Because while Saucier emphatically states in his letter that the California Gambling Control Commission didn’t rule against him or his company in their recent closed regulatory meeting, all evidence points to the contrary. In fact, it is the CEO’s very checkered past involving misstatements, witholding information, and providing misleading information that seems to have gotten him into the pickle in which he now finds himself. So who are shareholders to believe?
According to Administrative Law Judge Catherine Frink, not Saucier. She has described him as “evasive, intentionally dishonest, and misleading in his response to questions.” She adds that “in a highly regulated industry such as gaming, the failure to be forthcoming with relevant information was inexcusable.”
Whatever Saucier is trying to convince his minions of, it nonetheless appears that Galaxy Gaming LLC will no longer be able to operate as a tribal vendor in California following the Gambling Commission decision. In fact, he won’t even be able to request a reconsideration unless new evidence crops up.
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