Washington, D.C. 20549

                                    Form 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

             Date of Report:                             January 5, 2006
    (Date of earliest event reported)                    January 4, 2006

                             Multimedia Games, Inc.

             (Exact name of registrant as specified in its charter)

                            (Commission File Number)

                  Texas                                      74-2611034
      (State or other jurisdiction                         (IRS Employer
            of incorporation)                           Identification No.)

   206 Wild Basin Rd., Bldg. B, Suite 400,
                Austin, Texas                                  78746
  (Address of principal executive offices)                   (Zip Code)

       Registrant's telephone number, including area code: (512) 334-7500

Check  the  appropriate  box  below  if the  Form  8-K  filing  is  intended  to
simultaneously  satisfy the filing obligation of the registrant under any of the
following provisions:

|_|  Written  communications  pursuant to Rule 425 under the  Securities Act (17
     CFR 230.425)

|_|  Soliciting  material pursuant to Rule 14a-12 under the Exchange Act (17 CFR

|_|  Pre-commencement   communications  pursuant  to  Rule  14d-2(b)  under  the
     Exchange Act (17 CFR 240.14d-2(b))

|_|  Pre-commencement   communications  pursuant  to  Rule  13e-4(c)  under  the
     Exchange Act (17 CFR 240.13e-4(c))


Item 8.01  Other Events

Multimedia Games, Inc. (the "Company") was informed on January 4, 2006, that the
Circuit  Court  of  Jefferson  County,  Alabama  issued  an order in the case of
Jefferson  County Racing  Association and Milton McGregor v. Hale,  Civil Action
No. CV 2005-07684,  granting plaintiffs' motions that, (a) commencing on January
5, 2006, the law  enforcement  officials  return all equipment,  information and
information  media (the  "Equipment")  seized from the Birmingham Race Course in
Birmingham, Alabama on December 22, 2005, and (b) plaintiffs may begin immediate
repairs and  reinstallation of the Equipment at the Birmingham Race Course.  The
court  order  prohibits  operation  of the games at the  Birmingham  Race Course
without further order of the court.

The current schedule in the case requires the parties to work with a mediator to
develop  and  submit a  stipulated  version  of the facts in the case,  and file
briefs with the court by January 13, 2006, in connection with a January 17, 2006
hearing related to an extension of the existing preliminary injunction.

The Company intends to review these  developments with its customer,  assess its
legal position, and pursue available remedies,  including seeking a finding that
its system may be operated under Alabama state law. There can be no assurance as
to the outcome of the case or its implications for the Company's business at the
Birmingham Race Course.


The Company leased its new promotional sweepstakes system to the Birmingham Race
Course, which system became operational on December 15, 2005.

Prior to deploying its system, as is its general practice,  the Company obtained
and relied upon independent  legal opinions  analyzing Alabama law as applied to
sweepstakes  systems.  The Company  believes  its system is in  compliance  with
applicable law.  However,  the gaming markets the Company  addresses are heavily
regulated,  and the Company has  consistently  disclosed the risks of regulatory
enforcement action against its customers and equipment.

On December 22, 2005,  the Jefferson  County  Sheriff  served a search  warrant,
issued by an Alabama state judge,  on the Birmingham  Race Course in Birmingham,
Alabama.   Pursuant  to  such  warrant,   the  sheriff's   officers  removed  an
undetermined  number of the Company's  computer  servers and  sweepstakes  video
readers from the race course facility.

The Company had been informed  that on the  afternoon of December 22, 2005,  the
Circuit Court in Jefferson County,  Alabama issued a temporary restraining order
preventing the Jefferson  County  Sheriff from removing  additional  units,  and
essentially  "freezing" matters until the January 3, 2006 hearing.  In fact, the
judge had  issued a  preliminary  injunction,  which had the same  effect as the
temporary  restraining  order  noted  above,  for a  period  of 30 days or until
further notice of the court.



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.

                                        MULTIMEDIA GAMES, INC.

Dated: January 5, 2006                  By:    /s/  Craig S. Nouis
                                             Craig S. Nouis
                                             Vice President and
                                             Chief Financial Officer