The owner of a South Dakota telephone race betting business is reassuring his customers that they’ll be made whole despite the firm filing for bankruptcy.

On Monday, the Paulick Report broke the news that South Dakota-based advance deposit wagering (ADW) and off-track betting operator Bettor Racing Inc. had filed for Chapter 7 bankruptcy protection, citing over $11.8m in liabilities and less than $1.5m in assets.

The filing came after Bettor Racing lost its legal fight with its principal creditors, the National Indian Gaming Commission (NIGC) and the South Dakota-based Flandreau Santee Sioux Tribe. The tribe is owed over $6.1m while the NIGC is owed over $4.5m.

In 2004, Bettor Racing opened its ADW operations at the tribe’s Royal River Casino (pictured) due to the tribe’s favorable pari-mutuel tax rate. When the state of South Dakota reduced its pari-mutuel tax rate, Bettor Racing owner Randy Gallo announced he would move the ADW business out of the casino, prompting the tribe to modify Bettor Racing’s original contract to convince Gallo to stay.