Can a Casino Refuse to Cash Out Chips? Know Your Rights & Options!

You’ve hit the jackpot of a lifetime – but the casino won’t pay you out! Can this happen? We investigate when and why a casino can refuse to cash out your winnings.

There aren’t many reasons for a casino to refuse to cash out your chip, but they do exist. If it happens, rest assured that a licensed casino isn’t stealing from you, or trying to kill your buzz, they’re probably just following the letter of the law. Or they think you’re stealing from them.

Casinos are supremely regulated at a State and Federal level, and they have to follow protocols when it comes to cashing out. There are legal obligations to protect everybody involved: the players, the casino and the government.

As such, the main reasons a casino can refuse to payout are generally one of the below:

🛑 Failure to provide valid ID

🛑 Suspicion of fraud or cheating

🛑 Self-exclusion and gambling restrictions

🛑 Gambling intercept program for child support and tax debts

🛑 Malfunctioning machines and disputes

Let’s take a closer look at each reason listed above and discuss your options should any of these prevent you from getting your winnings paid out!

Failure to Provide Valid Identification

Casinos don’t get a choice here, they have to provide records of any large wins, including your identification. Any win over $1,200 on the slots and $10,000 on the tables must be reported to the Internal Revenue Services (IRS) and that can’t happen without proper valid ID.

The Anti-Money Laundering laws under the Bank Secrecy Act add another layer of complication, as casinos simply aren’t allowed to hand over large cash sums without any kind of traceability.

An expired or invalid ID like a suspended driving license won’t work, even for a frequent player who is well-known to the casino. State laws can also catch some people out, especially if they’re gambling on vacation.

In some states, you have to be 21 to cash out winnings, which could be bad news for an 18-year-old, while other states have different rules regarding acceptable identification.

What Can You Do About It?

This one is quite simple. Get your ID, or get your ID in order. Some casinos will let you hold on to the chips while you get your ID fixed, while others will issue you a receipt and hold the chips so you can complete the cash out on the provision of a proper ID. There may be time limits, but this is a simple one to solve in most cases.

Suspicion of Fraud or Cheating

This is a necessarily broad term that covers everything from card counting to stealing and selling or transferring chips to another person to avoid taxes, regulations, or ID checks.

Counterfeit chips are another common issue that is getting more advanced with the advent of 3D printing. The best casinos have largely got the measure of counterfeit chips with RFID tags that help track the chip’s movement through the whole betting process and physical premises. If the casino suspects cheating or fraud, it can legally refuse to cash out the chips until a full investigation is complete.

In 2014, Rear Admiral Timothy M. Giardina, then the second-in-command of US nuclear forces, was implicated in a counterfeit poker chip scandal. His DNA was found on counterfeit $500 chips created by altering lower denomination chips with paint and stickers, which were then used at the Horseshoe Casino in Council Bluffs, Iowa. He avoided criminal prosecution, but he was removed from his position, and the reduction in rank set his career back years.

What Can You Do About It?

You’re entitled to a full explanation as to why the casino is withholding payment, and you are also entitled to a review of the evidence and copies of surveillance. There is also normally an internal appeals process at the casino, which you may have to request.

If you feel wronged, act immediately. Gather witness statements if there’s an issue with how you acquired the chips, including fellow players and dealers, and keep any receipts. Follow up with a complaint to the local gaming commission or state regulatory body.

Lastly, you might want to consult a specialist gaming attorney if it’s a significant amount. That won’t be cheap, but it may be worth it if it’s a big win.

Self-Exclusion Lists and Gambling Restrictions

Problem gamblers often take steps to combat their addiction, and that can include self-exclusion. It’s a solid way to prevent gambling, especially online, but people can forget they have gone through the self-exclusion process at physical casinos – especially if they were intoxicated or otherwise impaired at the time.

The dealer has no reason to refuse anyone and slot machines don’t check IDs, so the self-excluded gambler can easily go back to the casino, gamble and win. The problem comes when it is time to cash out.

Essentially, in the eyes of the law, this is unauthorized play. Casinos should not, and likely will not, pay self-excluded players. This has resulted in numerous court cases, and the casinos generally win.

Some gamblers work all of this out before it comes time to cash out and pass their chips to a friend to cash out for them. Again, this violation of terms can even lead to criminal charges.

What Can You Do About It?

Not much, is the honest truth. You can ask the casino for an internal appeal and claim you went through the self-exclusion under duress or distress, which is unlikely to work. You can also file a complaint with the local gambling commission, which is likely to side with the casino. Lastly, you can take legal action, which is unlikely to succeed and could cost you much more.

“Self-excluded players cannot collect winnings, as the law considers their play unauthorized. Courts generally side with casinos in these cases.“

— Jane, Responsible Gambling Advocate

Gambling Intercept Program

A number of states have joined the Gambling Intercept Program and that means if you owe child support, back taxes or other major debts, that big win might be going to the State and not to you.

Arizona, Colorado, Illinois, New Mexico, Iowa, Indiana, North Dakota, Louisiana, Maine, North Carolina, New Jersey, Pennsylvania, Michigan, and more have already joined the program, and the individual states have collected millions of dollars each in delinquent debts.

Can a casino keep your winnings? In this particular instance, they won’t, but they can refuse to hand them over to you.

What Can You Do About It?

Well, your dispute in this instance isn’t with the casino; it’s with the State, so you can probably guess your chances. There might be a slim possibility that it’s all a mistake, and you can clear your name and collect your win. Most likely, your big win has knocked a small portion off your outstanding balance somewhere.

“Casinos don’t withhold winnings lightly. If your chips are flagged for tax or child support intercept, your issue is with the state, not the casino.”

— John, Casino Compliance Officer

Malfunctioning Machines and Other Disputes

This might be the most controversial reason for refusing a payout. In almost any other field, the company is responsible for maintaining its equipment and providing the correct service. But that’s not the case in casinos.

Slot machines and table games can and do malfunction, which can result in inaccurate payouts and unscheduled jackpots. Now most casinos have signs up saying that a malfunction can void any winnings, but the whole concept seems unfair.

Case Study

In 2017, Katrina Bookman hit the $42.9 million jackpot on the Sphinx Wild slot machine at the Resorts World Casino in New York, and her life changed for a few minutes. The casino explained that the maximum payout on the machine was $6,500, and her jackpot was just a malfunction. They offered her a steak dinner and the $2.25 she should have won.

Bookman filed a lawsuit against the casino, but the Judge dismissed the case after citing the machine’s disclaimer that ‘malfunctions void all pays and plays’.

What Can You Do About It?

You can appeal to the casino’s good nature, which could work. You may be able to negotiate some form of middle ground or unofficial settlement. Then, you can appeal to the gaming commission or file a lawsuit.

What to Do If a Casino Refuses to Pay You?

If a casino refuses to pay you and you think it’s unfair, you need to prepare as if you’re going to see this through to the end. For one thing, it might make the casino consider their options and treat you more favorably. If it does end up in court, then you’ll strengthen your case exponentially by doing the right thing at the time.

1. Ask for a Supervisor or Pit Boss: Escalate the issue immediately to the supervisor or pit boss. Ask for a thorough explanation of why the casino is denying your payout.
2. Request a Written Statement: Casinos are legally required to give you a written statement and a formal reason for withholding payouts.
3. Request an Internal Appeal Immediately:  If you request an internal appeal then the supervisor is legally obliged to escalate your dispute to the casino’s management. This can be a critical step that brings upper management at the casino into play. If you’re being treated unfairly, this can be the chance to resolve it.
4. Get Witness Statements: Depending on the reason, it may strengthen your case to have the names and statements of key witnesses, who can be dealers, fellow players, and the supervisor in charge. A local commission or a Judge will undoubtedly take you more seriously if you have gathered the right information and have supporting evidence.

5. Request Copies of Evidence: Casinos use surveillance and data to make their case against you. Ask for a copy of everything, it may come in handy later..

6. Contact the Gaming Commission: Every state with legal gambling has a regulatory body that handles gambling disputes. You should file a complaint with your local gaming authority as soon as possible. All the major gaming commissions and contact details are at the foot of this page.

7. Seek Legal Assistance: If it’s a lot of money, and you’re absolutely in the right, then a gaming attorney is the last line of defense. It could be expensive and long-winded, but there’s a chance you’ll get your money in the end. The casino may also have its own policies about fighting expensive cases and offer a settlement that could work for you.

Conclusion

Casinos can refuse to cash out your chips for a variety of legal reasons, but you have rights, and you should know what they are. Knowing the dispute process before it happens will put you in a much stronger position to fight your corner and get the payout you deserve.

States with Legalized Gambling & Gaming Commissions

United States Gaming Commission Contact Information