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Line of Credit Questions

Discussion in 'Comps' started by Gambler1, Jan 3, 2013.

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  1. Gambler1

    Gambler1 Tourist

    Dec 28, 2012
    Trips to Las Vegas:
    In years past, I have always taken cash with me to Las Vegas. However, as my gambling budget has gotten bigger and bigger, carrying that much cash (for me) is getting nerve racking. I have carried travelers checks recently, but there is always a surcharge and can still be a pain in the butt getting them and cashing them.

    After reading here about Lines of Credit (LOC) and taking out markers, I thought this is a great way to go and started doing some research. I wanted to confirm that the following is correct:

    1. Lines of Credit are tied directly to a checking account(s). The casino does not care if I have a high net worth and great hard investments, only if I have liquid cash available for them to take. Do they even do a credit check?

    2. When applying, the casino will call my bank to confirm how much cash I have in checking accounts only and how long that money has been there. Are looking for a six(?) month average.

    3. Once I get a LOC, I can only use it at that casino for gambling purposes only. If I take a marker, win lots of money, I am expected to pay back my marker then and there at the table. I can keep the winnings in cash.

    4. At the end of my trip, the casino will ask me to settle up. Should I bring a personal check to do this?

    5. I am considering setting up a separate gambling checking account for LOC only. How much of a buffer should I have? For example, if I want a LOC of $25,000 do I need only $25,000 in my checking account? Or do I have to double it? How long does the account have to be active?

    Thanks for all your help in advance.
  2. Boone

    Boone Tourist

    Aug 17, 2011
    Trips to Las Vegas:
    1) I have never had my credit checked, only the casino checking with my bank on what my average $ amount on hand is. The last one didn't even ask if I had any in the account, only average
    2) see above
    3) you take out a marker is just like you writing them a check. If you have enough money to pay it back before you leave then great, you take them the money or chips to pay it off and get the marker you signed, promptly rip it up and it is like it never existed. If you don't they use that marker to pull money from your bank account just like a signed check from you. The marker even looks like a personal check with your signature in the bottom right hand corner.
    4) you don't have to settle up by the time you leave. Since they are tied to your account you can just let the casinos markers pull money from your bank account. I write a personal check in the amount I owe before I leave, take and match up all of the markers outstanding, then rip them up before I leave. I don't have to do that, it is just my preference.
    5) I can't answer this one, only that my LOC is 1/3 of what my account is. I don't think the account has to be open a huge amount of time especially if you let them know ahead of time that you are opening an account just for this.

    You can also wire money to their cage - if you were planning on setting up an account just for vegas it may be easier to just wire it. I have done this in the past, they whine a little but they won't turn away your money.
  3. Kickin

    Kickin Flea

    Aug 10, 2012
    Gambler1 - I literally just opened my LOC yesterday so can give you some answers.

    1) No, they didn't ask a single thing about any other account. I've never liked keeping much of anything in checking, only enough to cover my credit card bill and my overpriced Manhattan housing. Over 99% of my money is in other accounts but all they wanted to know was checking. We asked this question on the board once and didn't really get a clear answer but I imagine for people with really really big LOCs they can look at other accounts, but that's just a guess.

    2) Yes, the credit office at the casino called me and conferenced in my bank. The bank needed me to authorize them giving the credit office the information. They asked for current balance and for the average of the last 3 months - not 6. I wanted to open up a 20k line so left 30k in the account. But the average for 3 months was only about 15k (including that current month) since like I said I never leave much in checking. That was it - literally nothing else was checked. They called me later to say the line was approved.

    3) Yeah basically.

    4) Yeah basically, or mail it when you get home like Boone said.

    5) Like I said, I left 30k in checking only a couple weeks before applying for the 20k LOC. Prior to that I left the balance at only around 6k-7k to cover my monthly expenses. I asked them to call me after it was approved and got the call just a few hours later. So frankly, as a finance guy I have to say their level of due diligence is incredibly weak.

    Hope that helps a little, if not there are lots of people on this board who have played on LOCs for years.
  4. 44inarow

    44inarow VIP Whale

    Sep 8, 2012
    New York, NY
    Trips to Las Vegas:
    The thing is, though, given the way Nevada law works, they don't need to be quite as diligent as if they were extending you an actual "credit" line. A marker is treated like a regular check in Nevada, and failing to pay off your marker is equivalent to writing a bad check, with criminal penalties attached. That being the case, I imagine the underwriting doesn't need to be quite as stringent as it does (or, should be, but that's a discussion for another message board) for real credit.
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