Know the status of card dealers, contractors
By Rick Ask, Administrator
Gambling Control Division
Can card dealers work in a location as independent contractors, or do they have to be employees?
The issue of whether a card dealer can be an independent contractor has been raised several times with Gambling Control Division personnel recently, so I thought it would be a good idea to get some information out through my monthly Tavern Times article.
The question is: can a location operator bring in someone with a card dealer license to operate his card table as an independent contractor, shifting responsibility for certain taxes, insurance and fees to the dealer?
The answer, according to the Department of Labor and Gambling statutes and rules is “no.” A card dealer must either be an employee of a location operator or a card room contractor. They cannot be an independent contractor or function as a card room contractor without a card room contractor's license.
Under Department of Labor law, a card dealer would have to own his or her own business, be registered and approved by the Department of Labor and Industry as an independent contractor, be working under a contract with the location operator, and be free from control of the operator to be considered an independent contractor. Under gambling law, only a licensed card room contractor can enter and work under a contract with a location to operate a card room.
In fact, 23.16.1224(2), ARM, conclusively provides that “card dealers shall receive no share of the rake and must be employees of the licensed operator or card room contractor.”
So, unless a card dealer is also licensed by the Gambling Control Division as a card room contractor, has a card room business, and as a card room contractor is operating under a contract with the location operator, he or she has to be an employee of either a location or a card room contractor, and may not work exclusively for tips.
For more information on requirements to be a contractor in Montana, please see <http://erd.dli.mt.gov/wcregs/iccu.asp.>