Sadri

I. Introduction

In this case we hold that a Nevada cause of action to enforce gambling debts incurred at a casino for the purpose of providing the debtor with funds for gambling violates California’s public policy against gambling on credit and thus is unenforceable in this state.

Metropolitan Creditors Service of Sacramento (MCS) challenges a municipal court judgment declining to enforce gambling debts incurred by Soheil Sadri at a Lake Tahoe casino. We affirm.

II. Background

Sadri, a California resident, incurred debts totaling $22,000 over a two-day period in 1991 while gambling at Caesar’s Tahoe casino in Nevada. On January 13 and 14 he wrote the casino two personal checks for $2,000 and $10,000. On January 14 he executed two memoranda of indebtedness for $5,000 each. In exchange for the checks and memoranda, Sadri received chips, which he lost playing the game of baccarat. Sadri subsequently stopped payment on the checks and memoranda, which were drawn on his account at a Redwood City bank.

A Nevada statute makes credit instruments evidencing gambling debts owed to licensed persons, and the debts represented, valid and enforceable by legal process. ( Nev. Rev.…