The chief executive of Las Vegas-based Galaxy Gaming Inc, Robert Saucier, recently sent out a four-page letter to company shareholders with the aim of explaining issues associated with the recent decision made by the California gaming regulators.
On July 11 of this year, the California Gambling Control Commission (made up of four members) announced that it would uphold a ruling made by an administrative law judge that said that Saucier was not suitable for doing business in California.
In his letter, Saucier wrote, “The proceedings did not directly involve Galaxy but rather a predecessor entity that ceased business operation in 2009 and dissolved. At Galaxy, it is business and usual as we continue to provide our products and services without any interruption.”
The Galaxy entity is licensed by California tribes and manufactures table games, as well as side bets which are played with blackjack and other games. In addition, Galaxy also distributes an automated blackjack game, TableMax, which allows for blackjack play without the use of a live dealer.
In his letter, Saucier made it known to the company shareholders that Galaxy’s California gaming license had not changed and that it was still in “good standing” status. He went on to write that their status in other places was unchanged as well. The company plans to find and acquire new licenses as well as add more approvals in other jurisdictions.
Even so, the company is looking at possible problems over some statements that it made to Washington state gaming regulators who are now questioning the accuracy of those statement.
This recent recommendation that was issued by the California gaming commission is the end result of an investigation that has lasted some three years. During the investigation, Saucier was said to have withheld or misstated crucial and important information to California state officials which included information about his past education, criminal record, lawsuits, and various business dealings.
According to Catherine Frink who served as the administrative law judge, “Saucier was evasive and, in some instances, intentionally dishonest and misleading in his response to questions.” She went on to say, “In a highly regulated industry such as gaming, the failure to be forthcoming with relevant information was inexcusable.”
Saucier has since denied these allegations and informed shareholders that he has been working in the industry for over ten years.
According to gaming commission official located in Sacramento, this decision will mean that Saucier is not allowed to operate within the state of California as a tribal vendor. This ruling in California, which was unanimous, may also cause him problems with the Nevada Gaming Control Board who has recently said that they may need to look into requiring Galaxy to apply for a state license. In his letter, Saucier did not comment on the Nevada gaming regulators’ licensing decision, and he did not comment on the issues associated with the Washington State Gambling Commission.
He did however criticize the media coverage that he has gotten from California media outlets saying that the media had not explained correctly the various California proceedings. He denied that he had not reported details on his business or personal life to the California regulators. He claimed that he has no criminal record.