California Business and Professions Code 19906 – (a) A contract for the sale of a gambling enterprise shall state …
(a) A contract for the sale of a gambling enterprise shall state whether any outstanding gaming chips from the seller will be honored by the purchaser. If the contract does not require the purchaser to honor the outstanding gaming chips used by the seller, then the contract shall indicate what provisions have been made for the redemption of outstanding gaming chips as of the closing date of the sale.
(b) Prior to any action of the commission on the proposed contract for sale of the gambling enterprise, the department shall determine the amount of the seller’s outstanding gaming chip liability. The seller shall satisfy the commission that the amount of liability is safeguarded by a surety bond, escrow account, or other form of security sufficient to guarantee the availability of funds for the redemption of outstanding gaming chips. The seller shall give notice to the patrons of the gambling enterprise in order to provide an adequate opportunity for redemption of any outstanding gaming chips.
Terms Used In California Business and Professions Code 19906
- Commission: means the California Gambling Control Commission. See California Business and Professions Code 19805
- Contract: A legal written agreement that becomes binding when signed.
- Department: means the Department of Justice. See California Business and Professions Code 19805
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Gambling: means to deal, operate, carry on, conduct, maintain, or expose for play a controlled game. See California Business and Professions Code 19805
- Gambling enterprise: means a natural person or an entity, whether individual, corporate, or otherwise, that conducts a gambling operation and that by virtue is required to hold a state gambling license under this chapter. See California Business and Professions Code 19805
- State: means the State of California, unless applied to the different parts of the United States. See California Business and Professions Code 21
(Added by Stats. 2011, Ch. 391, Sec. 2. (AB 156) Effective January 1, 2012.)