ATTORNEY GENERAL OF TEXAS ISSUES OPINION

March 6 2007 - Texas Attorney General, Greg Abbot has issued an opinion concerning whether a machine that records a player's winnings onto a stored-value debit card is a "gambling device" for purposes of section 47.01(4)(B) of the Penal Code (RQ-0529-GA) To view the entire opinion click here.

Dec. 18, 2006 - Mineral Wells, TX - Wallace Distributing announced today that E-TOKEN sales for the year have exceeded all projections. Dock Ringo, President of Wallace Distributing made the announcement at a recent company board meeting. E-TOKEN's ease of use, security and reliability are only part of the reason for such a successful year. Wallace Distributing also attributes this success to its commitment to quality, customer service and a dedicated team of sales personnel, installers and technical support specialists. In addition, Dock Ringo also reported that E-TOKEN has expanded to markets nationally and is now used by operators in multiple states.

Sept. 15, 2005 - Mineral Wells, TX - Gifts-To-Give, the company that maintains the Online Redemption Prize Catalog web site that is designed to work with E-Token, has introduced a new and important time saving feature to the Online Redemption Catalog. We recommend the use of this gift or prize online catalog as a convenient, time saving, first class, prize redemption center for E-Token customers. The new feature is called "Quick Select".

The "Quick Select" feature is a new menu item on the Online Prize Catalog screen that lets you search for a prize the customer has selected from the catalog, by entering the prize's Catalog Item Number. This will greatly reduce the time required for an operator or owner to order redemption prizes for their customers by eliminating the process of having to browse for gifts your customers have selected before you order them. This great idea was requested during a conversation with a valued E-Token customer. We are committed to making E-Token and the associated Online Prize Catalog System work even better for you and help you run your Amusement and Vending operations as productively as possible. Please feel free to send us ideas and give us feedback about how we can improve E-Token to help make your Amusement and Vending business more efficient and profitable.

July 14-16 2005 - Wallace Distributing Co., Inc. showed the latest innovations in the E-TOKEN Stored Value Cashless System for Amusement and Vending machines at the 32nd annual AMOT State Convention in Austin, Texas. Several significant improvements have been made to the system since last years show.  The convention took place at the Austin Airport Hilton Hotel.  Members of the Wallace Distributing Co., team were available to show attendees how E-TOKEN can enhance an operator's profits and help make an amusement and vending operation run more efficiently.  Personnel were also available to assist our customers with their Gift Catalog Virtual Redemption needs.  The fully automated online prize ordering system was introduced at this convention as well.  We had the honor of talking with many existing E-Token customers and discussing E-Token with several AMOT members that are considering purchasing the E-Token system.

July 15, 2005 - Wallace Distributing Co., Inc. and Gifts-To-Give have finished a cooperative development project to make automated online prize ordering available to E-TOKEN customers from the E-TOKEN web site. To access the new online system, select the Online Catalog link from any page on the E-TOKEN web site - www.wdcetoken.com. Until now, prizes could only be viewed on the E-TOKEN web site, and orders were placed by fax or telephone by Authorized Operators. The online catalog gives owners and operators that use the E-TOKEN system another easy-to-use option in ordering prizes for their winning players. For more information see the Catalog Info link.

Jury Acquits Video Casino Owner, Manager of Gambling Charges

By SERGIO CHAPA
The Brownsville Herald, Brownsville, Texas
June 4, 2005 - A video casino owner and his manager were acquitted Friday morning from charges that they violated state gambling laws by awarding coffee, peanut butter and other household items as prizes at their 8-liner gaming business.

Lucky Spin owner Elwyn Leroy Herman, 65, and manager Guadalupe Rocha, 41, were found innocent by a jury that deliberated for about three hours in a trial that began Wednesday.

"Mr. Herman and the people at Lucky Spin were in compliance with the law," said defense attorney Ed Cyganiewicz after the verdict. "Each case will be decided on its own facts, but these gentlemen did all they could to comply (with the law)."

Brownsville police raided the Lucky Spin at 1607 Price Road on Aug. 5 and later arrested Herman and Rocha with three Class A misdemeanor charges of keeping a gambling place, gambling promotion and possession of a gambling device.

Prosecution tried to prove the defendants broke the law because patrons could win more than the legal limit of 10 times the amount they played in credits on 8-liner machines.

"The jury's decision signaled that some forms of video gambling could be permitted here", said Cameron County District Attorney Armando Villalobos. "My job is not to enforce morality, but rather the law," Villalobos said. "Like obscenity cases, there are community standards of whether this activity is permitted or not."

The district attorney said his office will continue to receive gambling cases from local police departments and review them.

"It has to be something serious such as an exchange of money or flat out gambling" Villalobos said.

Brownsville police said the Lucky Spin case was their first loss out of 14 investigations into illegal gambling at several area video casinos.

Brownsville Police Cmdr. Jan Hernandez said officers understood and respected the jury's decision, but will continue to investigate illegal gambling.

"If we get any complaints from the community to businesses such as this operating illegally, we are going to investigate them," he said.

Herman told The Brownsville Herald after the verdict that he reopened his video casino five days after the raid and will continue to stay in business.