US Court Denies $700,000 Gambling Debt Claim Over 18th-Century Law

A court in Pennsylvania has denied a physician couple’s attempt to recover $700,000 they had lent to an acquaintance for casino gambling, citing an 18th-century law that renders such debts unenforceable, The Times-Tribune reported.

Neurologist Vithalbahai Dhaduk and his wife said they provided their friend, Bhupendra Patel, with $700,000 in cash and casino chips in 2019 to play blackjack at the Seminole Hard Rock casino in Florida.

Of the total amount, $200,000 was issued in chips, while the remaining $500,000 was extended through a line of credit. Under their agreement, Patel was to cover any losses, but the funds were not repaid.

Courts at two levels dismissed the claim, citing a 1794 Pennsylvania statute, “Gaming Contracts To Be Void,” which states that debts arising from gambling are not legally enforceable and that any promise to repay them is void.

The law is rooted in England’s 1710 Gaming Act, enacted during the reign of Queen Anne, which influenced early American legal principles.

The plaintiffs argued that the case involved a legal loan connected to a licensed casino. However, the court ruled that the funds were provided specifically for gambling and therefore fell under the scope of the statute.

Moreover, the legalization of gambling in the state in 2004 did not repeal the provision.

As a result, despite evidence of the debt, the court refused to enforce repayment, effectively leaving creditors without legal protection in such cases.

Earlier, Gambling Park reported that legal sports betting handle in the U.S. had topped $150bn for the first time.