State Gambling Control Division Reaches Settlement with Nev. ‘Dial-up’ Contractor

The state of Montana has settled a lawsuit involving the Gambling Control Division and the companies it had contracted with to deliver a system to connect video gambling machines to a central computer, Gambling Control Division administrator Gene Huntington announced.

The state filed suit against Lodging & Gaming Systems Inc., GAMET and company president Steven Urie of Reno, Nevada, in July 2001 for reportedly failing to deliver the so-called ‘dial up’ accounting and reporting system. The defendants then filed counterclaims against the state.

The division had paid Urie more than $900,000 in 2000 to deliver and begin installing the system in Montana. The trial to recover the money from Urie was scheduled to begin in May 2004. However, Urie and his associated companies filed for federal bankruptcy protection in late December 2003.

“While it’s too early to know what amount Montana may receive in the end, it’s just as important that we have brought the dispute with Mr. Urie to an end,” Huntington explained. “Now we can move forward with developing a new system without worrying about liability from counterclaims and associated litigation costs.”

In the settlement agreement approved by the United States Bankruptcy Court for the District of Nevada earlier this month, Urie and his associated companies agreed to pay the state of Montana $550,000.

“We were confident we would prevail in the lawsuit, but it was clear that we needed to get our claim in line for consideration by the bankruptcy court,” Huntington added.