# ASC 405-924-25: Liabilities — Entertainment—Casinos — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/405/924/#25-recognition)

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## ASC 405-924-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/405/924/#25-recognition)

SEC content: no

#### Gaming Chips

##### [405-924-25-1](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-1)

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Gaming [chips](https://asc.understandingaccounting.org/glossary/c/#chips "Money substitutes, in various denominations, issued by a gaming entity and used for wagering.") are accounted for from the time the casino receives them even though the casino may not issue them immediately, but, instead, hold them in reserve. When a customer exchanges cash for gaming chips, the casino has a liability as long as those chips are not redeemed or won by the house. That liability is established by determining the difference between the total chips placed in service and the actual inventory of chips in custody or under the control of the casino.

#### Jackpot Liabilities

##### [405-924-25-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-25-2)

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An entity shall accrue a liability at the time the entity has the obligation to pay the jackpot (or a portion thereof as applicable), regardless of the manner of payment. See paragraphs

[924-405-55-1 through 55-2](https://asc.understandingaccounting.org/asc/405/924/#405-924-55-1)

for implementation guidance.