SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 2, 1999
------------
AMERICAN BINGO & GAMING CORP.
-----------------------------
(Exact name of registrant
as specified in its charter)
Delaware 1-13530 74-2723809
---------- ---------- ----------
(State or other (Commission (I.R.S. Employer
jurisdiction of File Number) Identification No.)
incorporation)
1440 Charleston Highway, West Columbia, South Carolina 29169
------------------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (803) 796-7875
--------------
Not Applicable
(Former name or former address, if changed since last report.)
<PAGE>
ITEM 5. OTHER EVENTS.
- ------- -------------
South Carolina Video Poker Legislation
- ------------------------------------------
On July 2, 1999, the Governor of South Carolina signed into law legislation
taxing and regulating video poker in South Carolina. The following summarizes
some of the key provisions of the new law.
- The new law requires a referendum to be held on November 2, 1999, in
which South Carolina voters will decide whether video poker payouts
should remain legal. If video poker payouts are banned as a result of
the referendum, payouts will be illegal after June 30, 2000.
However, if video poker payouts are supported by the referendum, then
payouts will remain legal and other provisions in the new law will
take effect.
- If video poker payouts remain legal, beginning December 1, 1999, the
bet limit will be $3 per hand and the payout limit will be $500 per
sitting. Video poker operators will only be able to provide the
$500 payout to video poker players, however, if the operators certify
to the South Carolina Department of Revenue before December 1, 1999,
that their machines are prepared for connection to the Department of
Revenue central monitoring system or that they have ordered the
necessary equipment required for connection to the system. Until
then, the current law regarding the $125 payout limit will remain
in effect.
- All video poker machines must be connected to the Department of
Revenue central monitoring system by February 1, 2000 in order to be
able to continue to operate after that date.
- If voters decide to keep payouts legal, a 25% tax on net machine
income after payouts will become effective beginning on December
1, 1999.
- Casinos, which are video poker locations with more than 5 video
poker machines, will not be licensed to operate after July 1, 2004.
After July 1, 2004, casinos may only continue to operate if the
county in which the casino is operating adopts an ordinance
authorizing casinos to operate. No casino may be licensed to
operate if it was not in operation on May 31, 1999.
If video poker payouts are banned in South Carolina as a result of the
referendum, the Company's financial position and operations will be materially
adversely affected. However, even if video poker payouts remain legal, the new
law will likely have a material adverse effect on the financial position and
operations of the Company due to the increased taxes and other regulations that
will be imposed on the video poker industry in South Carolina.
South Carolina Supreme Court Ruling
- ---------------------------------------
On July 13, 1999, the South Carolina Supreme Court ruled that video poker
players cannot win more than $125 in a 24-hour period. In addition, the Court
warned that advertising or offering jackpots over $125 could be a federal
racketeering offense. Advertising or offering jackpots over $125 could also be
criminal offenses under state law. The Court's ruling was issued in a case
filed by several plaintiffs who claim that the activities of some video poker
operators were illegal under current South Carolina law. Even though the
Company is not a party to this case, the Court's ruling will likely affect the
entire video poker industry in South Carolina.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AMERICAN BINGO & GAMING CORP.
---------------------------------
(Registrant)
By: /s/ Daniel W. Deloney
------------------------
Name: Daniel W. Deloney
Title: Chairman of the Board, President
and Chief Executive Officer
Dated: July 20, 1999
---------------
3
<PAGE>
