The Nevada Gaming Commission (NGC) took advantage of a new licensing protocol at its disposal this week when it opted to reject an application for an executive working with Minnesota-based Table Trac Inc, a manufacturer of casino information technology systems.
Prior to Assembly Bill 75 being passed into law earlier this year, the NGC could only affirm the Gaming Control Board’s (GCB) licensing recommendation on the applicant, reverse the GCB’s suggestion through a unanimous vote, or send the application back to the GCB for additional review.
But AB 75 now allows the Nevada Gaming Commission to also reject the applicant, and while that might sound very similar to a denial, its consequences greatly differ.
A rejection from the NGC allows the licensed company, in this case Table Trac, which was licensed in Nevada as a manufacturer and distributor this year, to continue operating in the state, but under closer scrutiny. A denial from the agency would have banned the company from all business.
Yesterday’s rejection was for Table Trac CEO and CFO Brian Hinchley. The GCB recommended denial due to evidence that Hinchley was orchestrating business deals prior to becoming licensed. He reportedly continued to try and operate in Nevada even after being warned by the GCB’s Enforcement Division.
Founded in 1995, Table Trac claims to have installed its IT systems at 130 sites throughout North, South, and Central America, as well as at casinos in the Caribbean. According to the company’s 2017 third quarter financial statement, Table Trac generated $1.86 million in revenue between July through September, and delivered seven new casino management systems.
Traded on the largely unregulated over-the-counter (OTC) markets where penny stocks live, Table Trac shares are currently going for $2 a piece. Its shares have varied wildly over the last year from a low of 51 cents to a high of $2.41.
To see just how chaotic things can get on OTC markets, check out the most unusual case of Neuromama, a company that once claimed to be developing casinos.
Moving forward, Table Trac’s CEO will be barred from personally conducting business on the company’s behalf in Nevada. Table Trac lists just two other individuals as part of its management team, founder and Chief Technology Officer Chad Hoehne, and VP Robert Siqveland. Both individuals haven’t been licensed by the Nevada Gaming Commission.
NGC Scolds Executive
During the licensing hearing with Hinchley present, Commission members didn’t hold back in explaining their 3-1 vote for rejection. The Las Vegas Review-Journal reports that Chairman Tony Alamo stated, “If we overturned the denial, you would become suitable and I don’t believe you’re worthy, at this point in time, to be a part of gaming.”
Commissioner John Moran, who was the lone dissenting vote who favored a total denial, said, “Stupidity is one thing and intentional actions is another. Denial is easy for me.”
Aside from rejecting Hinchley from becoming a licensed agent, the Commission approved several applications including one for Sega Sammy Holdings. The Japanese video game and pachinko machine manufacturer is thought to be an ideal partner for Las Vegas Sands or MGM Resorts to jointly construct an integrated resort in Japan.