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Gaming Guru

 

Credible Industry Created By Tough Regulatory Oversight

20 February 2002

The recent Enron debacle has dominated the news for many weeks now. Just as the stock market was starting to rebound, the questionable accounting practices utilized in connection with that industry have lead many to question the reliability of financial information released by companies in many different industries. As a result, the stock market has continued its downward trend.

Many have blamed the tendency of accounting firms that both consult with and audit companies of turning a blind eye to certain accounting practices of their clients in order to assure continued consulting business. Although Arthur Anderson has borne the brunt of much of the criticism, all major accounting firms are now being scrutinized. Fair or unfair, Wall Street's suspicion of the financial information has had a negative impact on stock values of some of this Nation's greatest companies.

Given all of the events of the past year, the wild downward ride of the stock market, the tragic events of September 11, and now the Enron scandal, it is reasonable for investors to ask where they can turn. Is there any industry where the numbers are real, where the financials can be trusted? The only one I can think of is the gaming industry.

Casino operators are subject to enormous financial scrutiny by all of the various state gaming regulators who watch every dollar, very carefully. There is little room for assumptions in this industry, and any such accounting assumption is made with the supervision and approval of regulators. For the major casino operators, this leads to independent scrutiny by several different states. For most major gaming suppliers (such as slot manufacturers like IGT) literally hundreds of gaming regulators worldwide review company financials and assure accuracy. This reliability of financial information is sure to be viewed as a safe haven for Wall Street. Unfortunately, there aren

David Waddell
David Waddell is an attorney for Regulatory Management Counselors, P.C. (RMC), which assists businesses in navigating the legislative, regulatory and licensing systems governing Michigan’s commercial and tribal casino industries. He is the co-author of The State of Michigan Gaming Law Legal Resource Book and one of the founders of The Michigan Gaming Newsletter.

David Waddell Websites:

www.michigangaming.com
David Waddell
David Waddell is an attorney for Regulatory Management Counselors, P.C. (RMC), which assists businesses in navigating the legislative, regulatory and licensing systems governing Michigan’s commercial and tribal casino industries. He is the co-author of The State of Michigan Gaming Law Legal Resource Book and one of the founders of The Michigan Gaming Newsletter.

David Waddell Websites:

www.michigangaming.com