CA Poker Room Shut Down For Not Having Enough Cash To Cover Chips

A California cardroom has been closed down amid claims that its owners did not have enough money to cover the chips-in-use, as well as failing to provide documentation relating to its bank accounts, according to an article in the Fresno Bee this week.

‘Gaming activities at the 500 Club in Clovis were suspended Wednesday, with the California Attorney General’s Office stating that the card room’s owners failed to have enough money to cover chips in use,’ stated the report.

“We served an emergency closure order today,” said Chris Moyer, deputy communications director for the state Attorney General in Los Angeles, following a raid by the Department of Justice’s Bureau of Gambling Control on Wednesday. Moyer added that: “We cannot comment further at this time.”

Dusten Perry, the 500 Club’s general manager, was quick to respond news of the closure, claiming that the Bureau of Gambling Control has an “inaccurate interpretation of their own regulations with respect to the casino’s chip bond. The casino’s lawyer was on site during the temporary closure and is currently working with the bureau to quickly reopen the club.”

He also claims that the 500 Club’s license wasn’t revoked, despite reports to the contrary which followed at least two ‘on-site evaluations’, the first of which saw the state claim that the chips in use “substantially exceeded the balances of the Clovis 500 Club’s chip liability and general accounts.”

According to the Fresno Bee, ‘The state Gambling Control Bureau said it also sought, on multiple occasions, records about the card room’s bank accounts, “but the Clovis 500 Club repeatedly failed to provide the requested documents.”

Perry, however, said that:

“Our attorneys are hopeful that we will be open in 48 to 72 hours,” stating that: “We have more than enough cash to cover the chips without looking at our bond.”

The cost to Clovis of the cardroom’s closure could be quite large, its operations reportedly bringing $420,000 into the town’s coffers in 2016 and $460,000 in 2015.