On 15 August, Galaxy Gaming Inc. Reported a modest profit for its quarter. This comes even though a California judge has upheld a gaming commission decision that the company’s CEO is not fit to do business in the state. The CEO in question is Robert Saucier.
According to reports, the Galaxy second-quarter net income came in at $85,000 which equates to zero cents per share. This compares with $62,000 for the same reporting period last year. Revenue was reported at $1.94 million, and this compares to $1.79 million for the second quarter reported in 2012. Company shares are sold on the OTC market and were unchanged at 27 cents.
In a statement made by Saucier, he said that even though the company is facing hard economic times, they will continue to lead, grow, and innovate. Galaxy is based in Las Vegas.
Galaxy manufacturers table games which also includes side bets. These can be played with games such as blackjack. In addition, the company distributes an automated table game where players can play blackjack without a aid of a live dealer. This is called TableMax.
On July 11 of this year, the California Gambling Control Commission upheld the ruling made by an administrative law judge that described Mr. Saucier as being unsuitable to do this type of business in the state of California.
Saucier defended himself during a recent conference call saying that Galaxy had been open and transparent. He went on to say that much of the information that had been used against him had been inaccurate and inconsistent. He also added that the company is licensed in California by individual tribes and that the company has only faced a revocation of its licenses from two tribes. According to Saucier, the company earns approximate 3 percent of overall revenues in California.
According to Saucier, the company plans to continue doing its business with the tribes and has promised to keep interested parties informed as to what is happening. He stated that so far there has been no fallout from other business interests in other locations or jurisdictions.
It was also reported that Galaxy is planning to file for a non-restricted gaming license in the state of Nevada. It was determined back in July of this year by the Nevada Gaming Commission and Control Board that Galaxy needed to go ahead and make its application for the Nevada license. There has been no word yet from the Nevada commission as to what this current problem in California may have on their decision.
The investigation that led up to the decision took three years. It involved looking into Saucier’s business license applications as well as personal history. He was formally accused of withholding (or in some cases misstating) important and crucial information to state officials who suggested that he had not been honest about his past criminal record, schooling, lawsuits, and certain business dealings. He has from the beginning denied these allegations. Further legal action is expected as he tries to clear his name of these charges.