California Says It Might Revoke Poker Room License500 Club Casino To Get Hearing Over Fund To Cover Chips In Use |
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One of California’s nearly 90 card rooms is in hot water for allegedly not having enough money to cover its chip liability, and now the state is saying it could revoke the license.
The 500 Club Casino in Central California, equipped with a dozen poker tables and a variety of other table games, was shut down earlier this month over the allegations, though the card room says it has more than enough to cover the chips in the form of a backup bond fund.
The Clovis card room was still without gambling as of Monday morning. The 500 Club reopened the bar an restaurant on Aug. 22, according to its Facebook page.
The dispute over the chips between the club and the California Gambling Control Commission will play out in Sacramento in the coming days. The Club told Card Player that a hearing was scheduled for Monday, Aug. 28, though the case wasn’t on the agenda posted to the state’s website.
Here’s what the state alleged in an 11-page accusation two days after closing the club.
August 9, 2017, the Bureau conducted an onsite evaluation of the Clovis 500 Club’s financing. That investigation disclosed that Clovis 500 Club lacked, and failed to maintain, sufficient records to document its current chips-in-use liability. Nonetheless, the Bureau was able to determine that the Clovis 500 Club’s chips-in-use liability was no less than $438,600, which was the value of the chips held on that date by Rhino Gaming, Inc., the Clovis 500 Club’s third party provider of proposition player services. The Bureau determined that the balance in the Clovis 500 Club’s chip liability bank account on August 9, 2017, was $50. The Bureau also determined that the balance in the Clovis 500 Club’s general bank account was negative $10,617, on that date. The Clovis 500 Club’s chips-in-use liability on August 9, 2017, therefore, substantially exceeded both the balance of the Clovis 500 Club’s chip liability bank account, and the combined balances of the chip liability account and general account. On August 14, 2017, the Bureau conducted another onsite evaluation of the Clovis 500 Club’s financing and again determined that the Clovis 500 Club lacked sufficient funds in its designated chip liability account to cover its actual chip liability. On August 16, 2017, the Bureau again conducted an onsite evaluation of the Clovis 500 Club’s financing and determined that Clovis 500 Club lacked sufficient funds in its designated chip liability account to cover its actual chip liability.
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