Multimedia Games Launches Reel Time Bingo

25 June 2002

Although Multimedia Games is still waiting for a final ruling regarding MegaNanza, it is moving ahead with the installation and rollout of its newest interactive bingo game.

While still challenging the government's ruling that its most popular game at Native American gaming facilities, MegaNanza, is in violation of National Indian Gaming Commission regulations, the company today announced the installation of its Reel Time Bingo game in numerous facilities.

A handful more facilities are set to install the new version by the end of the week.

The rollout of Reel Time Bingo comes as Multimedia received a favorable ruling in the court system in its battle to keep MegaNanza up and running.

On Friday, the company and its tribal partners received a preliminary injunction preventing the NIGC from taking further enforcement action them until the courts make a final ruling on the Class II status of MegaNanza or on the government's motion to dismiss the Multimedia Games suit filed in April.

The injunction came after a handful of tribes that are Multimedia clients received orders from the NIGC that they were in violation of NIGC rules and could face criminal charges if they continued to operate MegaNanza.

In April the National Indian Gaming Board issued an advisory opinion that MegaNanza is a Class III bingo game, which means that it can only be legally conducted on Indian lands if permitted under compacts between a state and a Native American tribe.

Multimedia Games had requested to have MegaNanza classified as Class II, which includes bingo and bingo-like games that can be legally played on Indian lands without state or local government approval.

Gordon Graves, CEO of Multimedia Games, said the injunction eases the tension for both his company and the tribes who want to continue to carry MegaNanza and introduce Reel Time Bingo. He also said the chances of the MegaNanza issue being settled soon are slim.

"We don't have the risk that we did before," he said. "Pretty much everything is up in the air at this point. We have been through this thing so many times before though. We know the court will have to decide to dismiss the case or not, and I think the probability of dismissing the case is low. I think it will be a long time before we get any real results from the courts."

Graves said his crews got four different halls up and running with the Reel Time upgrade on Monday and that another five are scheduled to be complete by Tuesday afternoon. Another three are slated to go live Wednesday.

"We might wait until after the 4th of July to put more in, but it looks like it is running great right now," he said. "We are real pleased about it."

Graves said MegaNanza is a "bonanza-style" game. Bonanza-style games are popular at Indian reservations throughout the country, he said. The games involve balls being drawn before the cards are sold to players. That element of the interactive version, Graves said, made it not a bingo game in the eyes of the NIGC. Reel Time has the cards sold before the balls are drawn, making it in line with NIGC regulations.

The key to the game's popularity, though, is how many players are using it. That, Graves said, is why it is important to get as many of the tribes dialed into the system as possible. He said once the current wave of installments is complete, the system will have liquidity.

"In order for it to truly work, you have to have it linked and have lots of players so you don't have a big delay waiting to get enough players to start the game," he said. "We will have enough running by the end of the week that we won't see any delay."

Graves said he is suggesting to all of his clients that they at least convert some of their existing games to Reel Time. Having Reel Time installed in the halls will make any future switches easier if the tribes are forced to pull MegaNanza.

"If we have any more trouble with the government, and they did decide to dismiss the case, we could convert them all over to Reel Time almost immediately," he said.

And company officials are confident that they will also win the MegaNanza case. In a statement released to the media regarding the injunction, executives said they were confident the case would be won now that their side will be heard.

"After we have been allowed to make a full and complete presentation, we believe that the courts will concur with our view that the MegaNanza family of games constitutes legal Class II gaming at Native American gaming facilities," the statement said.