{"id":123798,"date":"2020-01-07T14:23:27","date_gmt":"2020-01-07T22:23:27","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=123798"},"modified":"2020-01-07T14:54:16","modified_gmt":"2020-01-07T22:54:16","slug":"california-card-room-ordered-to-close-insufficient-cash-to-cover-players","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/","title":{"rendered":"California Card Room Ordered to Close, Insufficient Liquidity to Cover Players"},"content":{"rendered":"

California\u2019s Bureau of Gambling Control (CBGC) ordered the emergency shutdown of the Magnolia House Casino in Rancho Cordova on Monday after it was discovered that the Sacramento-area card room did not have enough funds to cover all the chips in circulation.<\/p>\n

\"Magnolia
California AG filed a complaint last week that seeks to have the Magnolia House Casino in Rancho Cordova stripped of its gaming license. (Image: Magnolia House Casino)<\/figcaption><\/figure>\n

Under California gaming law, operators must keep the money players pay to buy gambling chips separate from accounts used for operating costs.<\/p>\n

But according to a complaint filed last week by California Attorney General Xavier Becerra, who oversees the CBGC, Magnolia House had comingled these funds, using the chips account for payroll and other expenses.<\/p>\n

The card room also refused to cooperate with the CBGC investigation, said the complaint, which seeks the revocation of its gambling license.<\/p>\n

Patrons at Risk<\/strong><\/h2>\n

Becerra said in a press release issued Monday that \u201cmultiple reviews of its finances revealed that [Magnolia House] was seriously underfunded, threatening significant losses to patrons and players.”<\/p>\n

\u201cThere\u2019s no excuse for failing to comply with the law and attempting to ignore regulators,\u201d Becerra added.\u00a0<\/strong>\u201cIf you want to operate a gambling establishment in this state, then you must do your part to uphold the public\u2019s trust. Magnolia House hasn\u2019t done that and it\u2019s putting its patrons at risk.<\/p>\n

At the California Department of Justice, we\u2019ll take decisive action when appropriate, and that\u2019s why we\u2019re issuing an emergency order to shut this operation down,\u201d Becerra added.<\/p><\/blockquote>\n

The card room also failed to keep funds from \u201cthird-party providers\u201d separate from operating funds, according to the complaint — another breach of state gaming law.<\/p>\n

Because California\u2019s tribal casinos have exclusivity on house-banked games, card rooms hire third-party companies that act as the bank and \u201cshill\u201d in the dealer spot for special modified versions of casino games like blackjack and Pai Gow Poker. The card rooms make money from the games by charging a rake per hand, as in a regular poker cash game.<\/p>\n

California Split <\/strong><\/h2>\n

These have long been a sticking point between the card rooms and the state\u2019s powerful tribal operators, who claim<\/a> some clubs are skirting the rules by essentially banking the games themselves. The tribes accuse authorities, including the CBGC, of not doing enough to police the card rooms.<\/p>\n

Last month, the CBGC bowed to pressure from the tribes, proposing rules<\/a> that would require each player at the table to act as the banker, with the role switching every two rounds, or else the game must stop. Previously, players could opt out of being the banker.<\/p>\n

Representatives for the card rooms have said these rules would decimate the $5.6 billion industry by complicating the games, and would scare off less experienced players who feel uncomfortable taking the banking role.<\/p>\n

For a card room like Magnolia House, which is already struggling financially, it could be the final nail in the coffin — unless Becerra gets there first.<\/p>\n","protected":false},"excerpt":{"rendered":"

California\u2019s Bureau of Gambling Control (CBGC) ordered the emergency shutdown of the Magnolia House Casino in Rancho Cordova on Monday after it was discovered that the Sacramento-area card room did not have enough funds to cover all the chips in circulation. Under California gaming law, operators must keep the money players pay to buy gambling […]<\/p>\n","protected":false},"author":36,"featured_media":123799,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21,13592],"tags":[],"acf":[],"yoast_head":"\nCalifornia Card Room Ordered to Close, Insufficient Cash to Cover Players<\/title>\n<meta name=\"description\" content=\"California card room Magnolia House Casino in Rancho Cordova shut down by regulator for failing to have funds to cover chips in circulation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Card Room Ordered to Close, Insufficient Cash to Cover Players\" \/>\n<meta property=\"og:description\" content=\"California card room Magnolia House Casino in Rancho Cordova shut down by regulator for failing to have funds to cover chips in circulation.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-07T22:23:27+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-07T22:54:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/magnolia-house.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"552\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Philip Conneller\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgphilc\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Philip Conneller\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/\",\"url\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/\",\"name\":\"California Card Room Ordered to Close, Insufficient Cash to Cover Players\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/magnolia-house.jpg\",\"datePublished\":\"2020-01-07T22:23:27+00:00\",\"dateModified\":\"2020-01-07T22:54:16+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/58769b72851c8cf117fb58ca150ebf8b\"},\"description\":\"California card room Magnolia House Casino in Rancho Cordova shut down by regulator for failing to have funds to cover chips in circulation.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/california-card-room-ordered-to-close-insufficient-cash-to-cover-players\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/magnolia-house.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/magnolia-house.jpg\",\"width\":1000,\"height\":552,\"caption\":\"California AG filed a complaint last week that seeks to have the Magnolia House Casino in Rancho Cordova stripped of its gaming license. 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