California Code of Regulations › Title 4 - Business Regulations › Division 18 - California Gambling Control Commission › Chapter 7 - Conditions of Operation for Gambling Establishments › Article 3 - Minimum Internal Control Standards (MICS) for Cardroom Business Licensees › Section 12388 - Extension of Credit, Check Cashing, and Automatic Teller Machines (ATMs)

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) A
				  cardroom business licensee may extend credit to a patron if, prior to extending
				  credit to the patron, the cardroom business licensee determines that an
				  extension of credit is not prohibited by any statute, law, regulation, or local
				  ordinance. A cardroom business licensee may not extend credit to a TPPPS
				  category licensee that is a party to a contract with the TPPPS owner type
				  licensee to provide third-party proposition player services. A cardroom
				  business licensee may not extend credit to an employee of the licensee to act
				  as a "house prop player" or "public relations player" in any controlled game.
				  In addition to complying with all laws regarding the issuance of credit, a
				  cardroom business licensee that extends credit to a patron must address, in
				  written policies and procedures and credit application form(s), the following
				  requirements for the extension and collection of credit:
(1) Establish a method for determining the
				  maximum amount which will be advanced to a patron, changes in the credit
				  amount, the maximum time an extension of credit will be outstanding, and
				  repayment terms.
(2) Prior to
				  extending credit to a patron for the first time, ensure that the person
				  requesting the credit is identified by examining the patron's unexpired
				  government-issued form of identification evidencing residence and bearing a
				  photograph of the patron, such as a driver's license or passport.
(3) Ensure that the patron is credit worthy
				  through an assessment of one of the following:
(A) Receipt of patron information on a credit
				  application form which includes the patron's name and signature, current
				  address, telephone number, social security number, bank and/or trade
				  references, employment information and income information, which must be
				  verified and used to form an assessment of the patron's financial situation,
				  collateral circumstances and credit worthiness.
(B) Receipt of a signed and dated
				  authorization from the patron to access their consumer credit report from a
				  bona fide credit-reporting agency to show the patron has an established credit
				  history consistent with approved credit policies and receipt of information
				  from a bona fide credit-reporting agency that the patron has an established
				  credit history consistent with approved credit policies.
(C) If any previous credit transactions exist
				  between the patron and the gambling establishment, an examination of those
				  records showing that the patron has paid in a timely manner all credit
				  instruments and/or otherwise documenting that there is a reasonable basis for
				  extending the credit amount to the patron.
(4) A cardroom owner type licensee or
				  designated key employee licensee other than a dealer must approve any credit
				  application.
(5) No credit may be
				  extended to any patron who has signed a self-exclusion form (Title
				  4 CCR
				  Section 12464) or has self-restricted access
				  to credit (Title
				  4 CCR
				  Section 12463) for the time period of the
				  exclusion or restriction.
(6)
				  Notify the patron of the issuance or denial of credit. The notification for
				  issuing credit must include the date of issuance, terms of repayment, and
				  interest charges, if applicable. If a patron is denied credit, and the denial
				  is based, in whole or part, on any information contained in a consumer credit
				  report, the cardroom business licensee must comply with Civil Code section
				  1785.20.
(7) If a patron is approved for credit
				  pursuant to subparagraph (B) of paragraph (3), a copy of the patron's consumer
				  credit report obtained by the cardroom business licensee must be kept on file
				  with the cardroom for as long as that patron's credit account is
				  open.
(8) Written or electronic
				  records must be maintained on each attempt to collect on delinquent credit
				  accounts.
(9) For each patron
				  issued credit, the cardroom business licensee must maintain a record of the
				  patron's credit limit, payment schedule, outstanding credit balance, and the
				  patron's signature on a credit agreement.