UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report: January 5, 2006
(Date of earliest event reported) January 4, 2006
Multimedia Games, Inc.
(Exact name of registrant as specified in its charter)
001-14551
(Commission File Number)
Texas 74-2611034
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
206 Wild Basin Rd., Bldg. B, Suite 400,
Austin, Texas 78746
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (512) 334-7500
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
|_| Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 8.01 Other Events
Multimedia Games, Inc. (the "Company") was informed on January 4, 2006, that the
Circuit Court of Jefferson County, Alabama issued an order in the case of
Jefferson County Racing Association and Milton McGregor v. Hale, Civil Action
No. CV 2005-07684, granting plaintiffs' motions that, (a) commencing on January
5, 2006, the law enforcement officials return all equipment, information and
information media (the "Equipment") seized from the Birmingham Race Course in
Birmingham, Alabama on December 22, 2005, and (b) plaintiffs may begin immediate
repairs and reinstallation of the Equipment at the Birmingham Race Course. The
court order prohibits operation of the games at the Birmingham Race Course
without further order of the court.
The current schedule in the case requires the parties to work with a mediator to
develop and submit a stipulated version of the facts in the case, and file
briefs with the court by January 13, 2006, in connection with a January 17, 2006
hearing related to an extension of the existing preliminary injunction.
The Company intends to review these developments with its customer, assess its
legal position, and pursue available remedies, including seeking a finding that
its system may be operated under Alabama state law. There can be no assurance as
to the outcome of the case or its implications for the Company's business at the
Birmingham Race Course.
Background
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The Company leased its new promotional sweepstakes system to the Birmingham Race
Course, which system became operational on December 15, 2005.
Prior to deploying its system, as is its general practice, the Company obtained
and relied upon independent legal opinions analyzing Alabama law as applied to
sweepstakes systems. The Company believes its system is in compliance with
applicable law. However, the gaming markets the Company addresses are heavily
regulated, and the Company has consistently disclosed the risks of regulatory
enforcement action against its customers and equipment.
On December 22, 2005, the Jefferson County Sheriff served a search warrant,
issued by an Alabama state judge, on the Birmingham Race Course in Birmingham,
Alabama. Pursuant to such warrant, the sheriff's officers removed an
undetermined number of the Company's computer servers and sweepstakes video
readers from the race course facility.
The Company had been informed that on the afternoon of December 22, 2005, the
Circuit Court in Jefferson County, Alabama issued a temporary restraining order
preventing the Jefferson County Sheriff from removing additional units, and
essentially "freezing" matters until the January 3, 2006 hearing. In fact, the
judge had issued a preliminary injunction, which had the same effect as the
temporary restraining order noted above, for a period of 30 days or until
further notice of the court.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MULTIMEDIA GAMES, INC.
Dated: January 5, 2006 By: /s/ Craig S. Nouis
-----------------------------------
Craig S. Nouis
Vice President and
Chief Financial Officer
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