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Staples said what the statute and rules, even policy, allow and do not allow would benefit from amplification.
"Under the Gambling Control Division's interpretation of the law - an interpretation which has not been challenged - if your gambling establishment gives cash back to a customer from a credit card transaction, you better have a merchant agreement with the credit card company that allows for that.
"Without such an agreement, the Division will interpret any cash you give back from a credit card transaction to be credit gambling.
"If you read the statute, it does say that a credit card may be used to obtain cash for a gambling activity. However, the Division has the policy that cash received from a credit card charge that is put into the machines can only be so exchanged when a merchant agreement clearly allows for cash to be given in exchange for a credit card charge.
"So why don't more licensees get cards with merchant agreements that allow for such exchanges? Apparently because some card companies simply won't enter into merchants agreements with gambling establishments, and others charge such high transaction fees for them as to be nearly prohibitive.
"So, to be clear, if your gamb-ling establishent does not have a merchant agreement that allows you to give cash back for a credit card charge, then don't do it. If you do have a merchant agreement with a credit card company that allows you to give cash for credit, do not try to designate the charges as something other than it is—such as for meals, curios or whatever—when it's actually for gambling.
"Let's face it: it's a credit card world. Consumer want to use their cards for the rewards and benefits that accrue such as air miles. They want as much activity recorded there as possible.
"A few may want to hide charges, but other perfectly respectable customers, especially while out traveling may want to gamble and do it with cash advances from their credit cards to get the air-mile benefits and other spiffs.
"But no matter how legitimate the reasoning may be, my advice is to not do it unless the merchant agreement specifically allows it.
"If you're wondering whether or not you have such an agreement, you probably don't. Your safest best is to just don't take credit cards for anything having to do with gambling. It's just not worth it."
Source: The Montana Tavern Times, May, 2008, published monthly by Continental Communications, 125 W. Granite St., Suite 102, Butte, MT 59701.
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