Bettor Racing Inc files for bankruptcy

Bettor Racing

Credits: marketwatch.com

Rrace betting company Bettor Racing Inc has filed for bankruptcy after losing a legal battle with NIGA and the Flandreau Santee Sioux Tribe.

US.- Bettor Racing Inc has filed for chapter 7 bankruptcy after losing a legal battle against the National Indian Gaming Association (NIGA) over a US$5 million sanction issued in 2011 for violating the Indian Gaming Regulatory Act. The South Dakota-based telephone wagering and off-track betting company has US$11,811,820 in liabilities, US$1,48 million in assets and owes former business partner the Flandreau Santee Sioux Tribe US$6,117,977.10 and NIGA US$4,522,722.96.

The company ran by Randy Gallo started operating in 2004 inside the Santee Sioux Royal River Casino in Flandreau under a contract approved by NIGA. However, due to South Dakota’s decision to modify tax rates, Gallo and the tribe made an agreement to modify said contract and did so twice. The second one of thos fee adjustments was not approved by NIGA and resulted in the Notice of Violation in 2011.

Gallo assures he didn’t know the fee modification had not been approved by the association but assured “they will get paid 100 percent,” and added: “I’ve been in this business roughly 20 years and players have always been my number one concern. With the bond, players are insured up to $10,000 per account. Anything over that I am going to make good. I have never cheated anyone a dime in my life.”

Meanwhile, the South Dakota Commission on Gaming has approved a new license with specific conditions and the businessman will start a new operation called South Dakota OTB. However, it won’t be able to start running until all customers of Bettor Racing have been paid off.