Galaxy Gaming Inc. on Thursday posted a modest quarterly profit as the company continues to do business in California despite the state’s gaming commission upholding a judge’s ruling that its chief executive is unsuitable to do business there.
Galaxy reported second-quarter net income of $85,000, or zero cents a share, compared with $62,000, or zero cents a share, for the same period last year.
Revenue was $1.94 million, compared with $1.79 million in the second quarter of 2012.
“In a difficult environment and uncertain economic times, we continue to grow, lead and innovate,” Robert Saucier, CEO of Las Vegas-based Galaxy, said.
Galaxy shares closed unchanged at 27 cents on the OTC market.
The company manufacturers table games, including side bets that can be played with such games as blackjack. Galaxy also distributes TableMax, an automated table game that offers blackjack without a dealer.
The four-member California Gambling Control Commission on July 11 upheld an administrative law judge’s ruling describing Saucier as unsuitable to do business in California.
In a conference call Thursday, Saucier said Galaxy has been as “transparent as we can be in this manner.” He described some of the information being released as “inconsistent” and “inaccurate.”
“The state can investigate and determine suitability, but we are licensed by individual tribes (in California),” Saucier said.
He said the commission’s findings do “complicate things” in California for Galaxy. But the company has only faced revocation of its license from two tribes.
Saucier said the company lost some $11,770 in quarterly revenue in California, where it earns 3 percent of its revenues.
“We expect to continue to do business with (California) tribes,” Saucier said. “We are also keeping other states and companies up to date. There has been no negative fallout in any other jurisdiction.”
Saucier said Galaxy Gaming next week will file an application for a nonrestricted gaming license in Nevada. In July, the Nevada Gaming Control Board determined the need for Galaxy to apply for a Nevada license.
The recommendation made in April to the California Gaming Commission was the result of a three-year investigation of his business license applications.
Saucier was accused of withholding or misstating crucial information to state officials about his past, including his schooling, criminal record, business dealings and lawsuits. He denied the allegations against him.
According to Galaxy’s earnings report, the company and Saucier filed a petition Aug. 9 with Sacramento County Superior Court, asking the court to find Galaxy Gaming of California LLC and Saucier suitable. Saucier expects a decision in four to six months.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893. Follow @sierotyfeatures on Twitter.