Gambling is always thought to be one
of the few industries that are recession proof. The economy of the United States
over the last few years has certainly put that maxim to the test. From coast to
coast, casinos across the country are posting lower returns, losses, and in
some cases bankruptcy. There are a myriad of reasons why a casino might lose money
from year to year. There are security, economic, personnel, and competition
variables that all must be factored in. One variable that almost never makes it
into a company’s press release is the amount of money currently owed by
players. I am talking about markers. If a casino has a substantial amount of
money, potentially millions, owed to it by various players this is in some
sense lost money. It is money that cannot be invested back into the hotel or
earn interest at a bank. There are costs associated with recovery including
manpower, time, and in some cases legal fees.
Recently one of the newest casinos
on the Las Vegas Strip took legal action against some well known celebrities to
recover money they believed they were owed. Charles Barkley owed a six figure
marker to the Wynn Las Vegas. Wynn not only filed the appropriate documents in
court to seek payment but went so far as to put out a press release. The
combination of legal action and public shaming worked as Barkley soon
afterwards settled with Wynn. Barkley supposedly owed the Wynn approximately
$400,000 in markers that were taken out last year.
When it comes to gaming most people
view it as a leisure activity. However when people borrow large sums of money
the casino and the state of Nevada
sees this as more of a business transaction. The requirements to take out a
marker are statutory and there must be signatures from both parties and an
understanding of the amount being borrowed. This indicates that the transaction
is really one of a contract. When a gambler steps into the pit and puts money
down on the table there is generally no need to sign any sort of contract, but
when gaming on credit the legal relationship changes to one of debtor and
creditor. At the heart of the matter is the fact that casinos are in the
business of making money.
Whether Wynn did the right thing or
not by publicly naming those who owed it money is not for me to say. However
their tactics were extremely effective in making sure that they got the money
owed to them. As long as the gaming industry continues to suffer along with the
rest of the economy I would not be surprised to see more casinos taking legal
action to get their money.
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