April 23, 2004
On Thursday, April 22nd, Acting General Counsel Penny Coleman of the NIGC sent the Chickasaw Nation and Multimedia Games, the largest supplier of Class II electronic games, a letter determining that the Winstar Casino development agreement is actually a management contract.
The Chickasaw Nation submitted the agreement to the NIGC in 2003 approximately around the same time the facility opened. The Chickasaw Nation is also in the process of expanding the facility.
The Chickasaw Nation agreed to devote approximately 80% of the floor space to Multimedia Games in exchange for the facility, in addition Multimedia Games owns the fixtures (lights, seats, etc.) in the building until the end of the contract.
Multimedia Games says that they will work along with the Chickasaw Nation to resolve this matter. In the meantime, the Chickasaw Nation has 20 days to submit all related Multimedia material to the NIGC or the potential for a Notice of Violation exists, similar to the previous situation with the Seminole Nation in Oklahoma. Under the Management Contract, related officials at Multimedia Games would also need to undergo additional federal review.
In 2002, the Chickasaw Nation had another ruling with the NIGC regarding Reel Time Bingo being a Class III machine. Multimedia later changed the game to fit with Class II standards after failed litigation.
The Chickasaw Nation is Multimedia Games' largest customer. The Chickasaw Nation also operates more gaming facilities than any other tribe in the Nation. Multimedia Games is currently in the process of expanding many of the Chickasaw gaming facilities, including purchasing land for the tribe.
Read Multimedia's Press Release: NIGC's Acting General Counsel Interprets Development Agreement as Management Contract
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