California Cardroom in Emergency Shutdown Due to Lack of Funds

A California card room has been shut down by the Attorney General this week after fears that it was ‘seriously underfunded’ and unable to meet customer cashouts…

The Magnolia House Casino, situated in Rancho Cordova, just 10 miles from the Stones Gambling House at the centre of the Mike Postle scandal, was issued with an emergency shutdown order.

Attorney General Xavier Becerra took action after “multiple reviews of its finances revealed that it was seriously underfunded, threatening significant losses to patrons and players.”

Claiming that the cardroom was unable “to maintain sufficient funds to cover the cost of patrons cashing out their chips,” the attorney general’s office stated:

“The card room will remain closed unless it is able to demonstrate that it has addressed its funding issues.”

The California Gambling Control Commission – apparently also currently investigating Postlegate – received a complaint last week, according to the Sacramento Bee newspaper website.

The document outlines five allegations against the casino, its operating company and majority shareholder, Thomas B. Sheridan:

• Underfunded chips-in-use account
• Use of third-party and patron funds in operations
• Failuring to provide Information and documents requested by the director
• Failing to reveal a fact material to qualification
• Unqualified for continued licensure

So far there has been no comment from the casino manager, Stan Seiff, nor Mr. Sheridan.

For those who have been following the Postlegate scandal referred to above, the California Gambling Control Commission have yet to comment on the matter.

A $10million civil lawsuit was launched late last year on behalf of players, alleging Mike Postle cheated during multiple livestreamed cash games at the Stones Gambling House.

Full coverage of the biggest scandal in recent poker history can be found here.