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California Regulators Haven't Addressed Unlimited Wager Issue

19 September 2005

SACRAMENTO, California – As reported by the San Diego Union-Tribune: "Seven years ago, opponents of a new card club in the San Francisco suburb of Colma filed a formal complaint with state regulators, alleging that the casino was preparing to offer unlimited betting in violation of state law.

"Former Attorney General Dan Lungren's office approved a provisional license for the club anyway. The director of Lungren's Division of Gambling Control reasoned that the legal question could wait until the club, Lucky Chances, went through a more thorough review for a full state license.

"Lucky Chances thrived and quickly became a campaign contributor to Lungren, a Republican; his successor, Democrat Bill Lockyer; and many others from both parties.

"In January, Lockyer's gambling control division finally finished a lengthy review and recommended a standard license for the club, according to the card room's attorney. But the Attorney General's Office had failed to resolve the original complaint, which questioned the legality of late changes that Colma made in its ordinance to permit no-limits wagering.

"Robert Lytle, the current director of the gambling control division, was told of the oversight, apparently for the first time, in July. After conferring with state attorneys, he quickly concluded that the 7-year-old complaint was dead-on.

"…With as much as one-third of its annual revenue at stake, Lucky Chances is scrambling to preserve its no-limits betting, which is essential to the wildly popular game of Texas Hold 'em…"

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