SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20349
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 20, 1998
CAPITAL GAMING INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
NEW JERSEY 0-19128 22-3061189
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(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incoporation Identification No.)
2701 E. CAMELBACK ROAD
SUITE 484
PHOENIX, ARIZONA 85016
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(Address of principal) (Zip Code)
executive offices)
Registrant's telephone number, including area code: (602) 667-0670
ITEM 5. OTHER EVENTS.
On July 20, 1998, Capital Gaming International, Inc., a New Jersey
corporation (the 'Company'), and Capital Gaming Management, Inc., a New Jersey
corporation (collectively referred to as 'Capital Parties'), and the Muckleshoot
Indian Tribe, a federally recognized tribe located in the State of Washington
(referred to as the 'Tribe'), the Muckleshoot Gaming Commission and Leo J.
LaClair (collectively referred to as the 'Muckleshoot Parties') achieved an
amicable resolution to the previously reported legal proceedings between the
Capital Parties and the Muckleshoot Parties as follows:
The parties entered into a Joint Stipulation and requested the United
States District Court, Western District of Washington at Seattle (the 'U.S.
District Court') to enter an order of settlement and dismiss with prejudice
the following pending litigation: Capital Gaming Management, Inc. and
Capital Gaming International, Inc. v. Muckleshoot Indian Tribe, Muckleshoot
Gaming Commission and Leo J. LaClair, Case No. C98-01560 (the
'Litigation').
Pursuant to the Joint Stipulation, the Capital Parties will receive a
total of Three Million Three Hundred Thousand ($3,300,000) Dollars, with
One Million ($1,000,000) Dollars (the 'Initial Payment') being paid within
three days after the U.S. District Court enters the order of settlement and
Two Million Three Hundred Thousand ($2,300,000) Dollars being paid in equal
monthly installments over the term of two years pursuant to the terms of
the Joint Stipulation. Such payments will constitute mutual fulfillment of
the Exclusive Operating Agreement between the Tribe and the Capital Parties
of April 24, 1995.
The U.S. District Court has entered the order of settlement and the
Capital Parties received the Initial Payment on July 29, 1998.
For previously disclosed information regarding the Litigation,
reference is made to the following reports of the Company filed under
Section 13 of the Securities Exchange Act of 1934, all of which are on file
at the Securities and Exchange Commission: Quarterly Reports on Form 10-Q
for the quarterly periods ended December 31, 1997 and March 31, 1998.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
No financial statements or pro forma financial information are required to
be filed as a part of this report. There are no exhibits filed as part of this
report.
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.
July 31, 1998 CAPITAL GAMING INTERNATIONAL, INC.
By: William S Papazian
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Name: William S. Papazian
Title: Senior Vice President and
General Counsel