Gaming company stock tanks

TUESDAY, JUNE 18, 2002

Last Updated: 12:35 p.m. EDT.

Stock price of Multimedia Games Inc. (NASDAQ:MGAM) dropped 31 percent today as tribal clients in Oklahoma were removing the company's controversial gaming machine from their casinos.

At least three tribes voluntarily removed the MegaNanza game in response to a letter sent out last week by the National Indian Gaming Commission. Those tribes were the Cheyenne and Arapaho, the Seneca-Cayuga and the Eastern Shawnee.

At least another tribe received a violation notice from the NIGC.

Two other tribes were reportedly planning court action in response to the latest developments. Those were the Choctaw Nation and the Cherokee Nation.

Trading was heavy this morning, with 4.14 million shares of MGAM stock moving after the company admitted its earnings would drop. The daily average has been around 400,000 shares.

At noon, stock price was $19.80, a drop of $8.70 from the start of day.

The company plans to offer its Reel Time Bingo game to tribal clients in place of MegaNanza.

Today on Indianz.Com:
Gaming shares sink on new rules (6/18)

Relevant Links:
Multimedia Games - http://www.multimediagames.com