NIGC ordered to settlement talks

FRIDAY, JUNE 28, 2002

A federal magistrate today ordered the outgoing members of the National Indian Gaming Commission to discuss settling a dispute over a controversial casino game.

U.S. Magistrate Sam A. Joyner of the Western District of Oklahoma ordered NIGC Chairman Montie R. Deer and Commissioners Liz Homer and Teresa Poust to a settlement conference. The talks are scheduled for July 2.

The order was made in response to a request by a casino company. In court papers filed yesterday, Multimedia Games Inc. (NASDAQ:MGAM). of Texas said "time is of the essence" for resolution.

According to the company, its financial future is at risk because tribes in Oklahoma are reluctant to keep running a casino game federal regulators consider illegal in the state. "[S]ome Indian tribes [said] they may wait until the outcome of the case before reintroducing MegaNanza games in their gaming facilities," the request for expedited settlement said.

By requiring the presence of NIGC officials, the company hopes to force an administrative decision about the status of the MegaNanza casino game. In conference calls with investors, Multimedia has stated repeatedly that Homer and Poust are receptive to its views.

Deer, on the other hand, is viewed as hostile for his recent actions. Earlier this month, he ordered Oklahoma tribes to shut down the MegaNanza game, which led to a 30 percent drop in Multimedia stock.

He also objected to new casino game definitions that Multimedia believes will ensure the MegaNanza game remains legal in Oklahoma.

But now that Homer and Poust are being forced to a settlement conference, they can in effect overrule Deer's objections to the MegaNanza game. Time is crucial because Homer is set to depart her post on July 5.

Multimedia and the Chickasaw, Choctaw and Cherokee nations won a preliminary injunction earlier this week and were allowed to keep running the game. Site visits by Indianz.Com confirmed that MegaNanza was in operation.

Relevant Documents:
Joyner Order (6/28) | Multimedia Request (6/28)

Discussion on Multimedia:
Yahoo! Finance Message Board

Relevant Links:
Multimedia Games - http://www.multimediagames.com
National Indian Gaming Commission - http://www.nigc.gov