By Gene Huntington, Administrator
Gambling Control Division
In recent weeks, Gambling Control Division investigators checking on poker games cited several operators for splitting the rake with card dealers rather than paying the dealers as employees. A gambling operator or a card room contractor who splits the rake with a dealer violates gaming law and Montana employment laws.
Montana gambling law provides that a licensed gambling operator may not share proceeds of the gambling operation with anyone who is not an owner of the license. This violation is treated as an unauthorized transfer of ownership of a gambling license and is a violation by the operator.
Gambling operators or card room contractors who engage dealers as independent contractors are likely to have a hard time meeting the requirements of Montana' independent contractor law. As a result of a 2003 Montana Supreme Court decision, the 2005 Legislature substantially changed the requirements to be independent contractor. For more information about these changes, please refer to the Department of Labor website at
The law now requires that independent contractors either have an exemption certificate or purchase workers' compensation insurance coverage for themselves.
Failure to obtain the exemption certificate or workers' compensation insurance will result in the Department of Labor and Industry treating the worker as an employee of the hiring agent. Hiring agents will be responsible for claims for injuries or occupational diseases and for payment of a premium on the wages of those considered their employees.
While it is important for licensees to understand the independent contractor law, the only way a dealer can take a split of the rake is for the dealer to be an owner of the gambling license.
The Gambling Control Division encourages all operators and card room contractors who employ dealers to take the steps to ensure that they are treating dealers as employees and take the necessary steps to follow the withholding requirements of the Department of Labor..
Source: The Montana Tavern Times, Dec., 2006, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.