gaming:

Company takes action after execs criticized in Arizona

Wednesday, June 24, 2009 | 4:53 p.m.

Arizona regulators say Vegas company should lose license (6-22-09)

Headlines from the Vegas gaming industry

Global Cash Access Holdings Inc. of Las Vegas said Wednesday it further distanced itself from two of the company's founders -- men sharply criticized by Arizona regulators who want to stop Global Cash from doing business in that state.

Global Cash said it told Karim Maskatiya it plans to buy 6,652,475 shares of its common stock held by him.

The firm said this is allowed in the company’s certificate of incorporation, which says it can redeem shares of its common stock that are owned by stockholders who are found to be unsuitable stockholders for gaming regulatory purposes.

The redemption will be completed on or about Sept. 22 at a price per share equal to the average closing price of the company’s stock on the New York Stock Exchange during the 30 trading days prior to the date of notice, Global Cash said. That price is about $6.98, the company said. The stock closed Wednesday at $7.33.

"The redemption notice was sent in an attempt to avoid the company’s loss of its regulatory approval to provide its products and services at Native American gaming establishments within Arizona," Global Cash said.

The company also said it repurchased 5,785,602 shares of its common stock from another founder, Robert Cucinotta, at a per share price of $6.25, making the purchase worth about $36.1 million.

The Arizona Department of Gaming recommended Global Cash be barred from doing business in the state because of incidents years ago when, the agency said, Global Cash defrauded banks by miscoding cash advance transactions; and because of a pattern of misleading regulators and of failing to be forthcoming with them.

Global Cash, which provides credit and cash advance services at casinos around the world, said Arizona generates about 5 percent of its revenue. The company plans to appeal the Arizona recommendation and insists it's worthy to be a vendor to Indian casinos there. It serves about 20 such casinos in Arizona.

Discussion: 3 comments so far…

By LVBear

6/25/09 at 4:38 p.m.

Suggest removal

So all this time the alleged crooks were on board, and once discovered, it's time to give them their golden parachute. Hilarious. Truly comical that it took a state like Arizona, where gaming is not a big industry, to discover all these alleged crimes, while the Nevada regulators did nothing, as usual. I'm surprised the Nevada folks can find their way to their offices every day, or whatever days they choose to come to their offices.

The Nevada Gaming Control Board -- truly a laughingstock: http://www.thebeargrowls.com/?p=32
By goingbust

6/26/09 at 11:23 a.m.

Suggest removal

I once considered using my credit card to get some cash out of one of these machines so I could play table games in a LV casino. The fees are obscene. I didn't do it. The casino lost my business because of these jokers. I don't know why casinos would work with a company like this that skims huge amounts (10% or more for smaller transactions) off the top. The casino could provide the service for less, take credit cards directly, and actually make it easier to play and improve business.
By bjbigplayer

6/26/09 at 10:55 p.m.

Suggest removal

Global Cash and it's subsidiary Central Credit are still operating in the old "Mob Based" casino world of 30 years ago. What other business can disguise check cashing services as "Credit" and maintain detailed credit databases on casino customers in total secrecy. Want to see your Central Credit files...when hell freezes over.

I'm not even going to get into mentioning their fees on cash access. One step below a loan shark.