It has long been the law in California that California State Courts will not enforce gambling debts. If you are wondering whether the selective and partial legalization of gambling in California imperils this rule, at least for now, it does not.
In Tak Chun Gaming Promotion Company Limited v. Long, filed October 26, 2023, by the California Second Appellate District, a Macau gaming company, Tak Chun, attempted to enforce a gambling debt against Kevin C.S. Long, a California resident, that Long had incurred while gambling in Macau. Tak Chun loaned Long “casino tokens” worth a total of $88 million in Hong Kong currency (over $11 million U.S.) and Long had only repaid $13,668,680 HK (about $1.7 million U.S.). Tak Chun brought suit against Long to recover the remainder in Los Angeles County Superior Court. The Superior Court dismissed the suit based on the public policy that gambling debts are unenforceable in California and Tak Chun appealed.
Tak Chun argued that its action should no longer be barred now that California has partially legalized gambling. In a twenty-one-page opinion, the Appellate Court upheld the dismissal of the action in which it reviewed the public policy behind the bar and determined that partial legalization of gambling in California did not change the policy.
So, if you bet big this Holiday season and don’t get paid, don’t look to the California Courts to help you collect on that parlay.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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