Funny, the Las Vegas PR doesn’t mention criminal prosecution for unpaid gambling markers.
Yet Nevada treats gambling markers like negotiable instruments (i.e. checks). Failure to satisfy a marker within 30 days can lead to criminal charges.
Gambling debts gone in bankruptcy
Most bankruptcy courts have held that gambling debts are dischargeable in bankruptcy, since everyone who gambles expects to beat the odds and win.
So, there is no intent to defraud within the meaning of §523 of the Bankruptcy Code.
Crimes not forgiven in bankruptcy
But in the last couple of months, two of my bankruptcy clients whose bankruptcies successfully discharged gambling debts have been contacted by the Clark County DA’s office with respect to criminal prosecution.
Of course, what the county is trying to do is to pressure the gamblers into a restitution order rather than jail time.
Be forewarned if a jaunt to Vegas beckons.
Image courtesy of kaloozer.