Gaming regulators in Washington state have withdrawn administrative charges filed against Galaxy Gaming Inc., a company executive confirmed Tuesday.
The charges filed by the Washington State Gambling Commission were the result of a routine audit conducted in 2010. That audit alleged the Las Vegas-based company made numerous misleading statements in its renewal and other applications, and documents submitted to the commission.
“We are extremely pleased that commission’s staff took the time to thoroughly examine all the issues regarding our timely reporting obligations to the commission,” said Robert Saucier, CEO of Galaxy Gaming.
Saucier said the commission’s Strategic Plan includes specific strategies to “support goals on improving processes and conducting business as simply as possible,” and to maintain “strategies that support voluntary regulatory compliance, strengthening relationships.”
Messages left with the Washington gambling commission were not retuned. In an eight-page settlement agreement obtained by the Review-Journal, Galaxy Gaming agreed to reimburse the commission $109,000 for costs associated with its investigation.
“We support these objectives by the commission,” Saucier said. “Working together, we established an enhanced methodology to ensure precise reporting and achieve efficient and effective regulation.”
Galaxy Gaming was originally licensed in Washington in 1998. According to the settlement, David Trujillo, director of the gambling commission, agreed to withdraw the administrative charges and cancel an administrative hearing scheduled for between Sept. 23 and Sept. 27.
Some 80 tribal and commercial casinos operate in Washington. The jurisdiction contributes about 15 percent of Galaxy Gaming’s recurring revenues, the company said.
Galaxy Gaming ‘s second-quarter revenue was $1.94 million. The company said withdrawal of the charges clears the way for expansion in Washington.
“Washington is one of our larger revenue-producing territories, and this opens the door to an increased commitment to expand our market share,” said Gary Vecchiarelli, CFO of Galaxy Gaming.
Meanwhile, the company still faces licensing in Nevada, after the California Gambling Control Commission in July upheld an administrative law judge’s ruling describing Saucier as unsuitable to do business in California.
Galaxy Gaming manufacturers table games, including side bets that can be played with such games as blackjack. The gaming company also distributes TableMax, an automated table game that offers blackjack without a dealer.
Shares of Galaxy Gaming gained 2 cents, or 9.09 percent, to close at 24 cents per share Tuesday on modest volume of 11.9 million shares traded on the OTC market. Galaxy Gaming shares have traded in a 52-week range of a low of 13 cents to a high of 32 cents.
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