Welcome Guest
Log In | Register )
You last visited December 10, 2016, 11:28 am
All times shown are
Eastern Time (GMT-5:00)

Texas lottery board charges bingo machine supplier fixed prices

Texas LotteryTexas Lottery: Texas lottery board charges bingo machine supplier fixed prices

A bingo machine supplier has been charged with fixing prices and selling its products directly to charities, according to state records and public filings.

The Texas Lottery Commission will hear evidence Friday against Game Tech International, the largest supplier of electronic bingo machines in Texas.

The allegations concern the behavior of a former employee and are untrue, said Andrejs K. Bunkse, general counsel for Game Tech.

"We will actively defend ourselves and believe there will be no finding of wrongdoing," Bunkse said.

The three-member commission could impose a fine against the Nevada company, revoke its Texas license or take no action.

A jury ruled against Game Tech last year in a federal lawsuit in Arizona. Jurors found that Game Tech improperly terminated its contract with a former distributor, Trend Gaming Systems of Austin, which complained about the price-fixing. The jury awarded Trend $3.5 million.

A Game Tech sales agent said pricing guidelines would help the company overcome pricing battles among distributors, according to an e-mail obtained by Trend for its lawsuit. The guidelines would help charities but cut into the supplier's profits.

"Game Tech management would determine how much each individual market could bear and hold price accordingly," the e-mail said.

Bunkse said the e-mail came from a former employee and declined to comment further.

But in a March letter sent to the commission, Game Tech's attorneys said state law does not prohibit price agreements between manufacturers and distributors so the company could not be held liable for price-fixing.

Texas law requires a bingo equipment manufacturer to sell or lease its equipment to a distributor, who then leases supplies to charities that conduct the games.

A manufacturer can work with distributors to ensure a minimum return, but law prohibits the manufacturer from dictating an exact price.

More than 1,300 charities are licensed to use bingo for fundraising, according to the Lottery Commission.

AP

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

5 comments. Last comment 11 years ago by LOTTOMIKE.
Page 1 of 1
Avatar
New Mexico
United States
Member #12305
March 10, 2005
2984 Posts
Offline
Posted: June 21, 2005, 8:59 am - IP Logged

Hmmm.  Bingo machines.  Bingo machines.  Bingo machines?

What the hell is a bingo machine?

I spent a century or two one evening at the SPJST hall in Round Rock, Texas playing bingo.  But I don't remember any machines a person could plug the pieces of corn provided to mark the cards into.  Mostly it was just a lot of Bohemian families staring at cards and listening to some guy a hundred yards away droning numbers through a speaker system.  No bingo machines I could testify to seeing.

People trying to drag other people kicking and screaming off to play bingo is one of the most common causes for suicide in Texas.

Bingo machines?  Price fixing?

Whew.

Jack 

    dvdiva's avatar - 8ball

    United States
    Member #2338
    September 17, 2003
    2063 Posts
    Offline
    Posted: June 21, 2005, 6:32 pm - IP Logged

    Having worked for that sleazy company I could believe any accusation against it. They also rip off employees to the tune of +$2000 in expenses and unpaid labor.

      Avatar
      New Mexico
      United States
      Member #12305
      March 10, 2005
      2984 Posts
      Offline
      Posted: June 21, 2005, 10:36 pm - IP Logged

      Sounds as though their troubles are only beginning.'

      Jack

        Avatar
        New Member

        United States
        Member #11051
        February 3, 2005
        4 Posts
        Offline
        Posted: June 22, 2005, 7:23 am - IP Logged

        Bingo machines are a relatively new thing here in Alabama.  They are Slot Machines that are"based" on a bingo game.  There is nothing that I can see that even remotely makes them like bingo.  They look loke slot machines, play like them, sound like them, pay off like them.

         

        Looks like a duck....

          LOTTOMIKE's avatar - cash money.jpg
          Tennessee
          United States
          Member #7853
          October 15, 2004
          11338 Posts
          Offline
          Posted: June 24, 2005, 7:28 am - IP Logged

          Sounds as though their troubles are only beginning.'

          Jack

          I Agree!