Treasure Island (TI) Gaming Chips

I read on the Las Vegas Advisor that TI would stop accepting Treasure Island chips after Jan 1, 2004.

I wrote the following back to LVA:

Can TI legally disallow accepting Treasure Island chips?

It seems to me that this is totally different than when a property is sold to a different company. I would think that law would see gaming tokens as a liability of a company. If the company is sold, the new owner can dispose of the liability in any way they see fit - such as putting an expiration date on when they will honor the old liability. However, if a company simply decides to change their name (and not owners), how can they simply decide that gift certificates or other monatary tokens bearing the old name are invalid?

In California, gift cards with a monatary value can no longer 'expire'; nor can the issuing company legally subtract a non-usage fee.

Is there some special Nevada law that allows the gaming companies to pull this kind of garbage? I don't see why TI doesn't consider the old chips to be souvenier chips -- even special issue chips from casinos can be cashed in if the casino still exists.

This sounds like a lawsuit waiting to happen...

They had no answer for me, but referred me to this message board.

Any comments?

Is there some special Nevada law that allows the gaming companies to pull this kind of garbage?

This has been discussed on Green Chip.

Nevada casinos have to honor their own chips for 120 days after they publish notice of change of chips.

Regulation 12.070, in pertinent part, provides:

... In addition to such other reasonable provisions as the chairman may approve or require, the plan must provide for:

(a) Redemption of outstanding, discontinued chips and tokens in accordance with this regulation for at least 120 days after the removal or replacement of the chips or tokens or for at least 120 days after operations cease, as the case may be, or for such longer or shorter period as the chairman may for good cause approve or require;

(b) Redemption of the chips and tokens at the premises of the gaming establishment or at such other location as the chairman may approve ...

Fact 1: TI isn't in California, so what ever California says about gift cards has no bearing.

Opinion 1: I think, technically, the chips are not supposed to leave the property, you are expected to cash in when you leave, so the idea of old chips is kind of a gray area. Casinos cashing old chips is a courtesy, but I'm not aware of any legal requirement.

I'm aware that TI isn't in California...

I was just pointing out a Consumer Advocate law that was passed here.

Thanks for the geography lesson.

I just think it's lousy that a company can change its name without a change of ownership, and not accept items with the old name.

Mirage pencil-pushers have a pretty good idea of how many chips are involved. I wonder how (or if) this instant 'income' will be realized on their next SEC filing.

Read LVBear584 reply above. It answers your original question and will relieve us of your ranting, since you are wrong.

"Mirage pencil-pushers have a pretty good idea of how many chips are involved. I wonder how (or if) this instant 'income' will be realized on their next SEC filing." .. Brian Fuchs

Depending on the size of that line item, probably just "income from operations."

Although if DD, Bigplayer, Mathboy, Bootlegger, etc don't get all theirs turned in in time it could be a large enough item as to require reporting seperatly. :)

Are you related to the dude who co-wrote KO Blackjack?