MGAM suffers total loss of Kansas City business.
Wyandotte Nation of Oklahoma’s illegal casino in downtown Kansas City was raided last week by Kansas State and city officials with the support of the Governor’s office. The raid occurred despite the tribe’s claims that the casino was on Indian land and that only the National Indian Gaming Commission had jurisdiction over the operation. The local Kansas authorities removed 150 gaming machines. Many, if not all, of these games are believed to be owned by Multimedia Games, Inc. (NASDAQ: MGAM, $23.65).
These games are in a far better market and far better location than Multimedia’s core business. They were added in August 2003 and have helped Multimedia hide the deterioration of its core business. As the calculations contained in the research report titled “MGAM’s analysts admit astonishing earnings decline” shows Multimedia’s analysts are expecting at least a 30% deterioration of Multimedia’s core business for the quarter ending March 31, 2004.
Below are four links to three articles and a televised news report that appeared in the KansasCityChannel.com website regarding the Wyandotte County Casino.
Asensio & Company, Inc. covers Multimedia Games, Inc. and maintains a Strong Sell and Short Sell opinion. A summary of the basis of our opinion is found in our October 2, 2003 report published on www.asensio.com.