By Gene Huntington, Administrator
The Gambling Control Division
The Gambling Control Division continues to hear second-hand information about credit gambling at card games.
The rapid expansion of card games in recent years has brought many new players into card rooms. New players may not be totally familiar with Montana' prohibition on credit gambling. Gambling on a cash basis is outlined in 23-5-157, MCA.
The reasons for Montana' statute are many, but it is clearly intended to prevent players from incurring gambling debts. The rule of thumb is that any transaction that can result in a player owing money to anyone is probably illegal.
The statute allows players to cash checks and use credit cards to get cash. However, any use of credit cards to obtain cash that represents the transaction as other than a gambling transaction or cash advance is illegal. Card games have some special limits that players and card room operators need to be aware of:
--Chips cannot be provided on the basis of chits or loans.
--Players cannot loan or advance chips to another player.
--Chips can only be sold for cash.
--Chips must be repurchased on demand for cash and at full value.
While an operator may cash checks for card players, chips must be purchased with cash. An operator who agrees to cash a check must do so unconditionally. There may be no agreement with the player that the check will be held or repurchased at a later time.
Statute and rules now require that these limitations on credit gambling be posted in card rooms.
The Division has recently received questions about house players and credit gambling. House Bill 190 provided that the house cannot require repayment of chips advanced to a house player.
While players may want the chance to recoup their losses, Montana law is clear: when you run out of money at the card table, it is time go home.
Source: The Montana Tavern Times, June 2007, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.