It's been a seesaw session as the broader market averages have been oscillating back and forth the unchanged level for the better part of the day.
There was some excitement in the gaming sector and shares of Multimedia Games (NASDAQ:MGAM) $20.64 -27% which we mentioned in passing yesterday in the market monitor at 09:47:32 AM after the National Indian Gaming Commission said it planed to publish a new set of rules regarding how technological aids could be used to play electronic bingo on Indian Reservations.
Today's further decline in Multimedia Games (MGAM) came after the National Indian Gaming Commission (NIGC) said that MGAM's MegaNanza electronic bing product, violated the Indian Gaming Regulatory Act. Consequently, the tribe has shut down MegaNanza and asked MGAM to accelerate the installation of its Reel Time Bingo Product.
The company (MGAM) said "We thought that in light of the new rules that have been published regarding the use of electronic aids that it was unlikely the NIGC would actually expend the resources to initiate enforcement actions on this matter, but we were wrong."
Multimedia Games (MGAM) has also announced that it and three tribes have filed a motion to intervene in MGAM's pending lawsuit against the National Indian Gaming Commission requesting the Courts to confirm the Class II status of MegaNanza. In addition, MGAM and the tribes filed a motion for a temporary restraining order and an injunction to prevent the Government from taking further enforcement actions against MGAM or the tribes.
In past bearish profiling of slot machine maker International Game Technology (NYSE:IGT) $58.02 -1.89%, I've gotten multiple e- mails from subscriber holding put/short positions on this stock as to today's news from MGAM. Currently, I see no adverse impact as to the current events in MGAM as it relates to "electronic gaming" and slot machines that IGT would manufacture.