California’s Bureau of Gambling Control (BGC) last week ordered the 500 Club cardroom in Clovis to shut down for allegedly not having enough funds to cover all of its chips that were in circulation. The raid came without warning.
The club has been closed until further notice.
The regulatory agency claims that the number of chips in circulation “substantially exceeded the balances of the Clovis 500 Club’s chip liability and general accounts.”
The BGC had been investigating claims that the club did not disclose loans from person that the law requires be listed as partners, which would require being licensed by the state. The purpose of the law is to prevent felons or others with criminal backgrounds from being part owners in a casino in the state.
The club had failed to provide financial records when they were requested, said the BGC. After repeated requests, the BGC raided the property.
The cardroom’s license is still in force, but before it can reopen it must comply with all of the BGC’s demands. One of the most important would be to provide details on the source of all of the cardroom’s funds. The state will also require the club to hire an independent manager who will report to the BGC.
The club’s owner, Dusten Perry, claims that the BGC is misinterpreting its own regulations, but added that he is working with the bureau to reopen.
Meanwhile, Perry says he is losing $70,000 in revenues a day and 240 workers are not working.
