was falling almost 21% on news that one of its most popular games may not be permitted on Indian lands without a special compact between the reservation and the state.
The National Indian Gaming Commission has issued an advisory opinion that MegaNanza, Multimedia's interactive bingo game, is actually a Class III game under the Indian Gaming Regulatory Act of 1988, and therefore may not be played on Indian land without permission from the state. Multimedia had sought a ruling classifying the game as a Class II bingo game that could be played on Native American reservations without state interference, but the panel found that since the bingo numbers are predetermined before the cards are purchased, MegaNanza does not meet the traditional definitions of bingo.
The opinion is not binding on the NIGC as a whole, and Multimedia said it believes the ruling is not supported by statutes or by case law. The company claims to have already developed many different versions of the game that require purchase before the numbers are determined, and said that the ruling appears to relate to old versions of the game that are no longer played.
Multimedia's stock was recently trading at $27.95, about 21% off yesterday's close of $35.22.