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: December 23, 2005
(Date of earliest event reported) (December 22, 2005)
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. (or "the Company") learned yesterday, December 22, 2005,
that 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, we believe sheriff's officers have removed approximately 300 of
the Company's computer servers and sweepstakes video readers from the race
course facility. We installed approximately 1,300 sweepstakes video readers at
the Birmingham facility, the majority of which were used, with a significant
portion of the readers being substantially or fully depreciated.
We have 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 a preliminary injunction hearing, which we
expect to be held January 3, 2006. We do not believe our machines can be used in
the Birmingham facility until after such preliminary injunction hearing, if at
all.
We are in the preliminary stages of assessing these developments and their
potential impact on our current or future operating results.
Background
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We first publicly discussed the introduction of our new promotional sweepstakes
system in Alabama on our December 1, 2005 conference call. The system, which is
leased to the Birmingham Race Course, became operational on December 15, 2005.
Prior to deploying our system, as is our general practice, we obtained and
relied upon independent legal opinions analyzing Alabama law as applied to
sweepstakes systems. We believe our system is in compliance with applicable law.
However, the gaming markets we address are heavily regulated, and we have
consistently disclosed the risks of regulatory enforcement action against our
customers and equipment. We intend to review these developments with our
customer, assess our legal position, and pursue available remedies, including
seeking the return of our equipment and a declaration that our system and games
comply with Alabama state law. There can be no assurance as to the outcome of
our efforts to avail our legal position or to have our equipment returned.
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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: December 23, 2005 By: /s/ Craig S. Nouis
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Craig S. Nouis
Vice President and
Chief Financial Officer
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