On May 1, 2009, Multimedia Games, Inc. ("Multimedia") entered into a comprehensive settlement agreement with Diamond Game Enterprises, Inc. ("Diamond Game") to resolve all claims arising from a November 2004 lawsuit filed by Diamond Game against Multimedia and several of its former officers, Clifton Lind, Robert Lannert and Gordon Graves. This settlement agreement was reached while the parties were engaged in federal mediation and Multimedia did not admit any wrongdoing as a result of this settlement agreement. Due to this settlement agreement, Multimedia incurred and accrued an additional $4.2 million in total expenses (legal fees and settlement expenses). Multimedia expects to fully fund its portion of the settlement agreement no later than June 8, 2009.

On May 6, 2009, Multimedia issued a press release announcing the results for its fiscal 2009 second quarter, which ended on March 31, 2009, and is incorporated by reference into this Item 2.02. The full text of the press release issued in connection with the announcement is attached to this Current Report on Form 8-K as Exhibit 99.1.

Use of Non-GAAP Financial Information

Multimedia uses the non-GAAP measure of EBITDA in its earnings releases. EBITDA is defined as earnings before interest, taxes, amortization, depreciation, and accretion of contract rights. Although EBITDA is not a measure of performance calculated in accordance with GAAP, Multimedia believes the use of the non-GAAP financial measure EBITDA enhances an overall understanding of Multimedia's past financial performance, and provides useful information to the investor because of its historical use by Multimedia as a performance measure, and the use of EBITDA by other companies in the gaming equipment sector as a measure of performance. However, investors should not consider this measure in isolation or as a substitute for net income, operating income, or any other measure for determining Multimedia's operating performance that is calculated in accordance with GAAP. In addition, because EBITDA is not calculated in accordance with GAAP, it may not necessarily be comparable to similarly titled measures employed by other companies. The non-GAAP financial measure included in the press release has been reconciled to the corresponding GAAP financial measures as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures.

The information regarding Item 2.02 in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

(d) Exhibits.

Exhibit No.   Description
99.1          Press Release, dated May 6, 2009, announcing Multimedia Games, Inc.'s
              fiscal 2009 second quarter financial results.