Galaxy Gaming decides to withdraw application for licensing in Nevada for development and distribution of gaming content.
In the United States, there are strict hurdles that gaming companies must face and overcome in order to provide content to casinos as well as online operators. Galaxy Gaming Inc. was hoping to be given approval to operate in the state but has now decided to withdraw their application to be able to develop new games and distribute content due to a potential regulatory issue.
Withdrawing the Application
In Nevada, and like many other states, applications must be filled out in order to be involved in the gambling industry. There are many hurdles to clear in order to work in some form or fashion involving gaming and in Nevada, Galaxy Gaming had to fill out an application and gain approval before they could provide gambling companies with new gaming content.
On Thursday, it was reported by the Las Vegas Review Journal that the state’s Gaming Control Board had agreed to refer the licensing request by Galaxy Gaming back to the company. The company is known for developing, manufacturing and distributing casino table games as well as quality casino systems to gaming operators. They were set to visit the Nevada Gaming Commission on the 27th to discuss their application but have now decided to withdraw their application. During the meeting, the panel would have decided if Galaxy Gaming would be issued a license to develop and distribute new gaming options in the state.
The Nevada Gaming Commission has the ability to agree with the board and allow licensing to be given, overturn the decision or decide to reject but not deny licensing based on a new law just enacted. With the last option, Galaxy Gaming would be able to operate in the state but not be allowed to create new content.
Galaxy Gaming decided they did not want to take the risk and potentially lose out on creating new content while in operation within the state. They decided to withdraw their application and return at a later time in the future to be considered yet again. The company is currently fighting a decision by the California Gambling Control Commission in regards to gaming content from 2013 and are still awaiting an appeal decision.
The Las Vegas Review Journal reports that the state Gaming Control board took two days to question Robert Saucier, the President and Chairman of Galaxy Gaming, before they decided to give approval for the request to withdraw the application.
Saucier has been involved in the gambling industry of Nevada for some time but regulators in other states, like California, are not comfortable with him as he was involved in several cases in the past few years. Regulators in California ruled that the Galaxy Gaming President is not suitable to do business with the tribal casinos of the state. Other states like Washington and Oregon have also decided to not work with the company.
This places particular strain on the company if states elect not to do business with them based on one individual. We may see that investors ask for Saucier to be removed from his position so that Galaxy Gaming is better able to earn approvals in order to see new business deals created in states within the US. Other companies have made such moves, like Amaya Gaming removing David Baazov from his position within the company due to insider trading issues, in order to be able to conduct business without any issues hanging over their heads. It will be interesting to see is Saucier steps down or if other changes are made in order to give Galaxy Gaming the positioning they need to move forward.