“The marker therefore was valid and enforceable as a negotiable instrument under Nevada law.” —Bea, Circuit Judge Facts Amine T. Nehme, a California resident, is a repeat gambler at the Venetian, a licensed casino in Las Vegas, Nevada. The Venetian is owned by Las Vegas Sands, LLC. Nehme applied for a line of credit with the Venetian by completing a standard credit application form. The bottom of the credit application provided: “Before drawing on my line of credit, if granted, I agree to sign credit instruments in the amount of the draw. Each draw against my credit line constitutes a separate loan of money. I will sign a credit instrument in the amount of the loan.” By signing the credit application, Nehme agreed to repay all loans and draws against his credit line. The Venetian approved a credit line of $500,000 to Nehme. One day, while gambling at the Venetian, Nehme signed a casino marker for $500,000 payable to the Venetian. Nehme exchanged the marker for chips and lost all $500,000 worth of chips playing Blackjack. Nehme then left the Venetian with the marker outstanding. The Venetian presented the $500,000 marker to Bank of America, the bank specified on the marker, but the marker was returned for insufficient funds. The Venetian sued Nehme for failure to pay a negotiable instrument. 

Issue: Is the Venetian’s casino marker signed by Nehme a negotiable instrument under the Nevada Uniform Commercial Code? 

Language of the Court: Here, the marker is a negotiable instrument and a check because it provides a mechanism for payment of $500,000 from Bank of America to the order of the Venetian, is signed by Nehme, and is payable on demand because it states no time or date of payment. On the face of the marker, the order is unconditional and states no undertakings by Nehme other than to pay a specific sum of money. The marker therefore was valid and enforceable as a negotiable instrument under Nevada law. 

Decision: The U.S. court of appeals held that the casino marker was  a  negotiable instrument. The court remanded the case  for the determination of other issues involved in the case. 

Ethics Questions: Did Nehme act ethically in trying not to pay his marker? Should gambling casinos advance credit to gamblers?