California officials order shutdown of Rancho Cordova card room 

Attorney General Xavier Becerra has issued an emergency shutdown order against Magnolia House Casino, a card room on Folsom Boulevard, just south of Highway 50.

The casino was said to be “seriously underfunded” and lacking enough money to cover the cost of customers cashing out their gambling chips.

“The card room will remain closed unless it is able to demonstrate that it has addressed its funding issues,” Becerra’s office announced.

In a complaint filed last week with the state Gambling Control Commission, Becerra’s office said it has been warning Magnolia House’s management since June about its financial irregularities.

Becerra’s office said “multiple reviews of its finances revealed that it was seriously underfunded, threatening significant losses to patrons and players.”

Among other things, Magnolia House has been unable “to maintain sufficient funds to cover the cost of patrons cashing out their chips,” the attorney general said.

It also failed to deposit funds from “third-party providers” into separate accounts, as required by state gaming laws, the Sacramento Bee reports. Card rooms, unlike Indian casinos in California, aren’t allowed to act as “the house” and are required to work with third-party providers that handle the actual betting at their card tables.

Under California gambling laws, card rooms like Magnolia House also aren’t allowed to operate slot machines and must rely solely on their table games.