Guidelines when using cards

1. ACCEPTANCE OF CHEQUES / DEBIT CARD TRANSACTIONS WITH NO ESTABLISHED FACILITY.

a) Customers who have not made a facility may draw up to £1000 per bank account in any gaming session using either one guaranteed cheque (up to the value of the guarantee card) and / or debit card payments.

b) The £1000 limit may only be exceeded if the customer holds a cheque guarantee card for an amount in excess £1000.  In this case, the customer may draw up to the higher limit of the card, on the account to which the card relates, using either one guaranteed cheque and / or debit card payments.

c) Joint bank account holders are treated as separate customers provided each has their own individual cheque guarantee / debit card.

2. ESTABLISHING A FACILITY AND THE ACCEPTANCE OF CHEQUES / DEBIT CARD TRANSACTIONS WITHIN THAT ARRANGEMENT

a) Customers may make arrangements to use personal cheques (including scrip cheque) and / or debit card payments in addition to those specified in paragraph 1 above.  Any facility granted should be based on, and commensurate with, information indicating the financial standing / reputation of the customer, such as:

i) Satisfactory bank references

ii) Satisfactory trade references (e.g. other casino references, Central Credit)

iii) Known financial wherewithal (including Gold Cards etc)

iv) Previous satisfactory cheque / debit card payment history

v) Prominent individuals whose financial standing / reputation is not questionable

vi) Suitable assurances from a member of good standing

b)  In the absence of the above, if the customer claims or is known to be a member of, or to have played at any other casino in Great Britain, then reasonable enquiries will be made of that casino.  In the event that it is established that the customer is in debt to a casino in Great Britain, which was incurred within the last seven years, then no facility can be granted until that debt is cleared.

c)  The establishing of a facility must be authorised by a Grey or White certificate holder, whether on or off the premises, and recorded in writing.  If authorisation is given by telephone it must be countersigned at a later opportunity.

d)  Once a Cheque Cashing Facility (CCF) has been established, cheques or debit cards may be accepted within that amount with no further authorisation, and that the amount will be taken as “going through” unless otherwise stated.

3. GENERAL NOTES ON ACCEPTANCE OF CHEQUES AND DEBIT CARD PAYMENTS

a) No guaranteed cheque will be accepted if an earlier proposed debit card transaction on that account has been refused in that same gaming session.

b) In the event that a debit card transaction is refused, further transactions may be attempted for lesser amounts.

c) Bank drafts and third party cheques drawn in favour of the player and endorsed by him in favour of the casino must not be “non transferable” within the meaning of the Cheques Act 1992.

4. PLAYERS EXCEEDING FACILITY LIMITS

a) When a facility has been established by a casino in respect of a particular player, no transaction which would cause the player’s liability to exceed that limit shall be permitted by the casino except in the following circumstances, and then subject to a prescribed procedure as follows:

That the casino genuinely expects that any cheque exchanged for the means to game as a result of the temporary increase of that player’s facility limit, will be met upon first presentation, and the casino can justify such expectation e.g. show that its knowledge of the player’s affairs provides reasonable assurance of the player’s ability to pay for the agreed increase in his gaming.

Prescribed procedure means where such circumstances apply, the player’s cheque or debit card for gaming may be accepted provided that the transaction is approved and authorised by the casino at  White certificate holder level or, in circumstances where such a person is not available, the senior manager holding the Board’s Grey Certificate.  A record of any such authorisations shall be maintained and made available to the Board’s Inspectors.

The record must show:

i)  reasons for approval

ii) name and title of the person who authorised it and his signature

iii) the amount of the transaction

iv) the cumulative amount drawn in excess of the facility at the time of authorisation

v)  the outcome e.g. whether the cheque cleared, and when.

5. SUSPENSION OF CHEQUE CASHING FACILITIES

a) A player’s Cheque Cashing Facility will immediately be SUSPENDED as soon as notification is received from the casino’s bankers that a cheque is dishonoured.

b) In these Guidelines, a dishonoured cheque means any cheque for gaming returned to the casino by the bank to which it was delivered for payment or collection, whether marked for representation or not.  It includes, in the case of a request for special clearance, oral advice that a cheque will not be met on first presentation.

c)  Any fate suffixed by the words “Held” (for example, “RDPR (held)”), or any similar type of answer (for example “effects not cleared”) may be a useful indicator that funds are imminently expected, and thus physical return may not be desirable.  However, a cheque must none the less be considered as dishonoured where, when contacted, the drawer’s bank cannot authorise payment by the close of business on the day that it received the cheque.

d) The holder of a Grey Certificate may approve a CCF Suspension being lifted (within the casino’s own signature authority levels) provided the cheque has been paid and the debt has been cleared.

6. WITHDRAWAL OF CHEQUE CASHING FACILITIES

a) A person who “persistently” dishonours cheques shall have his Cheque Cashing Facility WITHDRAWN and shall not be re-instated unless the procedure set out in paragraph 6(e) has been applied.

b) A person shall be regarded as “persistently” dishonouring cheques if cheques presented consecutively on three occasions within three months are dishonoured.  For the purposes of this definition, a cheque means a single cheque, or series of cheques, all banked on the same banking day,  (including, for example, a series of cheques banked after a weekend).

c) For the purposes of this Guideline, any cheques with a fate covered by paragraph 5(c) shall be excluded when considering whether a player has “persistently” dishonoured cheques, provided the cheques were paid within ten banking days of initial receipt by the drawer’s bank.

d) Where the CCF is not withdrawn, the White Certificate holder shall give and sign a full written explanation detailing why withdrawal is not considered appropriate.  The record should also include reference to the White certificate Licence holder having obtained suitable assurances from the player concerning future transactions.  The written record of any such authorisations will be made available for the Board’s Inspectors.

e) Re-instatement from withdrawal may only be permitted if the following steps have been taken by a White Certificate holder:-

i) The re-instated limit may be for no more than the CCF limit held at the time the player’s facility was suspended and withdrawn.

ii) Current information must be diligently sought from other casinos where the customer is known to play or, alternatively, written references must be taken on the player’s bank.

iii) A written record will be completed by the White Certificate holder noting that the player has been advised of the importance of cheques being paid on first presentation.  This record must be available for the Board’s Inspectors.

f) Following re-instatement in the above circumstances, the player’s CCF may not be increased, or any excess facility granted, for three months, unless authorised by a White Certificate Holder using the prescribed procedure detailed in paragraph 4(a).  In such cases, the White Certificate holder must show that there are demonstrable and material changes in the player’s circumstances to justify confidence in their decision.

7. CANCELLATION OF CHEQUE CASHING FACILITIES

a) Where a player has been subject to withdrawal of their CCF three times in a twelve month period, within the circumstances detailed in paragraph 6, the facility must be cancelled.

b) No player who has had their CCF cancelled shall have it restored unless an application is received from them in writing.  This application may then only be approved by a White Certificate Holder, who must provide a full written justification detailing the reasons for restoration.  This written record must be retained on the premises and be available for the Board’s inspection.

8. ACCEPTANCE OF CHEQUES FROM DEFAULTING PLAYERS

a) No casino shall accept a cheque not backed by a cheque guarantee card from a player to enable him to game if that player has dishonoured a previous cheque from which the debt or any part of it remains outstanding to that casino except in special circumstances, and then subject to a prescribed procedure as follows:

Special circumstances mean, where despite the previously dishonoured cheque, the casino still genuinely expects that the new cheques will be met upon first presentation, and the casino can justify expectations, e.g. show that the player is well known as a regular member of long standing with a hitherto sound record, or has never before dishonoured a cheque for gaming at the casino, and that its knowledge of the player’s affairs provides reasonable assurance of the player’s ability to pay.

Prescribed procedure means, where such special circumstances apply, the player’s cheque for gaming may be accepted provided that the transaction is approved and authorised by the casino at Director or White certificate holder level or, in circumstances where such a person is not available, the senior manager holding the Board’s Grey certificate.  A separate record of any such authorisations shall be maintained and made available to the Board’s Inspectors. The record must show:

i)    reasons for approval

ii)  name and title of the person who authorised it and his signature

confirming the decision

iii) the amount of the cheque

iv) the outcome e.g. whether the cheque cleared, and when

b) Except as provided for in 8(a), any player who has dishonoured a previous cheque from which the debt or any part of it remains outstanding to that casino, shall be prohibited from gaming except for cash or its equivalent, e.g. cheques supported by a cheque guarantee card, debit cards, chips, travellers cheques, bank drafts and cheques drawn by a third party of known and established good repute.

9. OVERSEAS CHEQUES

a) Where a player’s cheque drawn on an overseas bank account has been presented for payment within the prescribed two banking days, and payment remains outstanding for a period longer than 30 banking days (or in the case of territorial USA, 40 banking days), from receipt of the cheque by the casino’s bank, the cheque will be noted as overdue and, for the purposes of these guidelines, treated in the same way as a “dishonoured cheque”.  Nevertheless, licensees should make every endeavour to seek confirmation of the fate of cheques drawn on foreign accounts and all relevant enquiries should continue to be recorded for inspection.

b) When determining the fate of any cheque, only “bank to bank” enquiries may be relied upon.  Verbal assurances of payment may be accepted provided they are received from the casino’s bankers as a result of enquiries made by them to the drawer’s bank.

c) Permitted clearance times shall be calculated in UK banking days.

10. SETTLEMENT OF DEBTS

a) No casino shall agree to the compromise of a dishonoured gaming or substitute cheque, or enter into any arrangement to make settlement of a player’s debt arising from any such cheque for less than the full amount for which that cheque was drawn, except

(i) in the event of an “enforced settlement” involving bankruptcy, liquidation or a company voluntary arrangement, administration order, or individual voluntary arrangement under the Insolvency Act 1986; or under parallel arrangement abroad; or

ii) when all reasonable legal possibilities of recovery of the debt have been exhausted, and the player makes an offer of part payment in full settlement of the debt conditional on the casino discontinuing any further steps to pursue the remainder, the casino may if it wishes respond by saying that whilst UK legislation prevents it from accepting the offer in full satisfaction of the debt it is prepared to accept it on the basis that no further steps will be taken to recover the balance.  Membership of the casino, and all other casinos in a company group, will however be cancelled with no possibility of reinstatement as long as the debt remains.  Casinos should note that any such cases should be cleared first with the Board’s Chief Inspector.

b) Where an indebted player has subsequently been discharged from bankruptcy arising in whole or in part from that debt, or if any outstanding debt has become unenforceable in law through the passage of time, upon application for facilities the provisions of paragraph 2 will apply.

Information source: Gaming Board of Great Britain

last updated: June 2003