500 Club in Clovis temporarily closed by State Bureau of Gambling Control

CLOVIS, Calif. (KFSN) -- The State Bureau of Gambling Control came in with an emergency ordinance, closing the 500 Club at Shaw and Willow because they do not feel the club has enough money in reserve to cover the chips gamblers use as money to play card games with.

"No warning-- no warning of the temporary shutdown, of the order, they just walked in with that-- we didn't know that was coming," said Club General Manager Dusten Perry.

The state claims their audit showed the card room had close to half a million in chip liabilities and just $50 in its chip liability account and was more than 10,000 short in its general account.

But Perry said the club has plenty of money and a bond-- a form of insurance, to cover any chip liabilities.

"That bond is in place, it's been in place for many years, and that combined with cash in the casino and cash in our vaults more than covers our chip liability."

The state is not commenting, but in their court filing they say they audited the club on August 9th and again on the 14th and made them aware of the alleged irregularities. The state is now requiring the club to set up separate bank accounts and hire an independent manager to handle the money if they want to reopen.

Perry said the club is appealing to the state, but will comply with their order if they have to, to reopen.

"My guess is we will probably be open within 72 hours, possibly less."

Perry said the shutdown is costing about $70,000 a day in revenue. The shutdown put 240 employees out of work.

In addition, the 500 Club pays about half a million dollars a year in taxes to the City of Clovis.

Management emphasizes they are not out of business, but temporarily closed.
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