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February 11, 2012

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Casino ATM supplier to settle Arizona complaint

By Steve Green (contact)

Wednesday, Nov. 4, 2009 | 3:18 p.m.

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Global Cash Access Holdings Inc., a Las Vegas company providing ATM machines and credit services at casinos around the country, said Wednesday it agreed in principal to settle a complaint filed by Arizona regulators and will continue to operate in that state.

The Arizona Department of Gaming this summer recommended Global Cash be barred from doing business in the state because of incidents years ago when, it charged, 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.

Details of the settlement were not immediately disclosed, but the company said settlement of the matter along with unrelated legal issues didn't affect operating results in the third quarter.

"The agreement confirms GCA has sufficiently addressed the concerns in (the agency) notice," Chief Executive Officer Scott Betts said.

"This has been a significant event for the company," Betts said, adding it confirms GCA is suitable for a gaming license in Arizona and other jurisdictions.

After release of the Arizona report, the company moved to distance itself from two of GCA's founders -- men sharply criticized by the Arizona regulators.

GCA this summer said it would buy back shares held by the founders, Karim Maskatiya and Robert Cucinotta.

Global Cash has said it serves about 20 Indian casinos in Arizona generates about 5 percent of its revenue in the state. Loss of its license there could have presented problems for Global Cash as it sought license renewals elsewhere around the country.

The settlement was announced as Global Cash announced third quarter revenue of $164.3 million, down 11 percent from 2008's third quarter.

The company earned $8.1 million or 11 cents per share, down from $8.6 million or 11 cents in the year-ago quarter.

"Business conditions in gaming clearly remain challenging," Betts said.

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