California’s 500 Club Cardroom reportedly shut down due to insufficient funds
The Bureau of Gambling Control in California has shut down a Clovis card room after reportedly finding that the facility had insufficient funds when it came to covering the chips in play. The 500 Club Cardroom was presented with an emergency closure notice this week and must remain closed until further notice.
According to Casino.org, the Bureau of Gambling Control found that the liability of the chips in-use was far greater than the balances of the card room’s chip liability and general accounts.
The Bureau reportedly completed an investigation into the club based on allegations that the 500 Club did not disclose loans from individuals who should have been named as business partners. Such individuals reportedly needed to be licensed by California gaming regulators. All owners have to be disclosed within a gambling business to make sure the individual does not have a criminal history.
The club was asked to provide the Bureau with financial records before it was raised on Wednesday. The club never provided the requested documents according to the Bureau.
While the cardroom’s license has not been revoked, the club will reportedly have to meet certain requirements before it will be allowed to reopen. According to the Fresno Bee, this will include detailing the source of all funds that are in relation to gambling activities. An independent manager must be hired, be approved and answer to the state as this individual will be overseeing the financial operations of the business.
Dusten Perry, the general manager of the 500 Club, released an official statement yesterday and reportedly said that the Bureau of Gambling Control had inaccurately interpreted their own regulations in regards to the chip bond of the casino. Perry reportedly went on to say that the attorney representing the casino was on site when the venue was shut down and is working with the bureau to see the club reopened.