Justia Gaming Law Opinion Summaries

The Court of Appeal granted summary judgment to plaintiff St. Charles Gaming Company d/b/a Isle of Capri Casino Lake Charles ("Grand Palais"), holding the casino was a :vessel" for the purposes of general maritime law. The decision contradicted Benoit v. St. Charles Gaming Company, LLC, 233 So. 3d 615, cert. denied, 139 S. Ct. 104 (2018), which held the Grand Palais was not a vessel. Plaintiff Don Caldwell worked for Grand Palais Riverboat, LLC, and was injured when the gangway attached to the riverboat malfunctioned and collapsed. Plaintiff petitioned for damages, alleging the Grand Palais was a vessel under general maritime law, and that he was a seaman under the Jones Act at the time of the accident. After a de novo review of the record, the Louisiana Supreme Court concluded the Grand Palais was a not vessel under general maritime law. Therefore, it reversed the judgment of the court of appeal and granted defendant’s motion for summary judgment, dismissing plaintiff’s suit. View "Caldwell v. St. Charles Gaming Company" on Justia Law

Plaintiff was employed by defendant Grand Palais Riverboat L.L.C. as a technician on the Grand Palais riverboat casino, and was injured when the gangway attached to the boat malfunctioned and collapsed. Plaintiff filed a petition for damages, alleging that the Grand Palais was a vessel under general maritime law, 1 U.S.C. 3, and that he was a seaman under the Jones Act, 46 U.S.C. 30104, et seq., at the time of the accident. The Grand Palais was built as a riverboat casino in conformity with the requirements of Louisiana law which authorize gaming activities to be conducted on riverboat casinos that sail on designated waterways. In 2001, the Grand Palais was moored to its current location by nylon mooring lines and steel wire cables, pursuant to La. R. S. 27:65(B)(1)(c), which allowed riverboat casinos to conduct gaming activities while docked if the owner obtained the required license and paid the required franchise fees. The Grand Palais had not moved since March 24, 2001. Necessary services for the Grand Palais’s operation as a casino were provided via shore-side utility lines, which supply electricity, water, sewage, cable television, telephone and internet services. These utility lines have not been disconnected since 2001. Additionally, the casino computer systems, including the slot machines, are located on land. The Louisiana Supreme Court granted certiorari to review an appellate court's decision granting plaintiff’s motion for summary judgment and holding the Grand Palais Casino was indeed a “vessel” for purposes of general maritime law. The Court determined this decision contradicted the court’s earlier decision in Benoit v. St. Charles Gaming Company, LLC, 233 So. 3d 615, cert. denied, ___ U.S. ___, 139 S. Ct. 104, 202 L. Ed. 2d 29 (2018), which held the Grand Palais was not a vessel. After a de novo review of the record, the Louisiana Court concluded the Grand Palais was a not vessel under general maritime law. Therefore, it reversed the judgment of the court of appeal and granted defendant’s motion for summary judgment, dismissing plaintiff’s suit. View "Caldwell v. St. Charles Gaming Co d/b/a Isle of Capri Casino-Lake Charles" on Justia Law

The 1992 federal Professional and Amateur Sports Protection Act (PASPA), 28 U.S.C. 3702, prohibited governmental entities from involvement in gambling concerning competitive sports. New Jersey’s 2012 Sports Wagering Act authorized sports gambling. NCAA and professional sports leagues (Appellees) filed suit. The district court entered a temporary restraining order (TRO) barring the New Jersey Thoroughbred Horsemen’s Association (NJTHA) from conducting sports gambling, finding that the state law violated PASPA. The court required Appellees to post a $1.7 million bond as security. On appeal, NJTHA successfully challenged the constitutionality of PASPA in the Supreme Court. On remand, NJTHA unsuccessfully sought to recover on the bond. The Third Circuit vacated and remanded. NJTHA was “wrongfully enjoined” within the meaning of Federal Rule 65(c) and no good cause existed to deny bond damages. PASPA provided the only basis for enjoining NJTHA from conducting sports gambling. The Supreme Court ultimately held that that law is unconstitutional; NJTHA had a right to conduct sports gambling all along. There was no change in the law; NJTHA enjoyed success on the merits and is entitled to recover provable damages up to the bond amount. View "National Collegiate Athletic Association v. Governor of New Jersey" on Justia Law

The Indian Gaming Regulatory Act, 25 U.S.C. 2701–21, allows some gambling on land held in trust for tribes, in every state, without prior approval. Class III gambling, which includes slot machines and table games such as blackjack, may be offered only in certain states if the tribe and state enter into a contract. Since 199,2 Stockbridge-Munsee Community, a federally-recognized tribe, has conducted gaming in Shawano County, Wisconsin. In 2008 Ho-Chunk, another federally-recognized tribe, opened a casino in Shawano County. Both feature class III gaming, authorized by contracts. In 2016 Ho-Chunk announced plans to add more slot machines and gaming tables, plus a restaurant, a bar, and a hotel. The Community sought an injunction, arguing that the Ho-Chunk land was not held in trust for the tribe on October 17, 1988. The parcel was conveyed to the tribe in 1969, but with a condition that was not lifted until 1989; in 1986, the Department of the Interior declared the parcel to be Ho-Chunk’s trust land. The Community argued that Ho-Chunk’s state contract treats its casino as an “ancillary” gaming facility and that the state has not enforced that limitation. The court dismissed the suit as untimely, reasoning that the Community knew or could have learned of both issues by 2008. The Act does not contain a statute of limitations, so the court looked to the Wisconsin limitations period for breach of contract or the Administrative Procedure Act's limitations period—each set a six-year limit. The Seventh Circuit affirmed, applying Wisconsin law. View "Stockbridge-Munsee Community v. Wisconsin" on Justia Law

The Mississippi Gaming & Hospitality Association (Association) petitioned the Mississippi Supreme Court for interlocutory review of a circuit court judgment denying its motions to participate as a respondent-appellee in the appeals filed by RW Development, LLC (RW), and Diamondhead Real Estate, LLC (Diamondhead) after the Mississippi Gaming Commission denied their applications for gaming site approval. The circuit court instead allowed the Association to participate as “friend[] of the court” under the Mississippi Gaming Control Act. Finding nothing improper with the circuit court's decision to allow the Association to participate as amicus curiae, the Court affirmed the circuit court’s decision. View "Mississippi Gaming & Hospitality Association v. Diamondhead Real Estate, LLC" on Justia Law

Joe and Dianne McGinty sued Grand Casinos of Mississippi Inc.-Biloxi alleging negligence and breach of implied warranty of merchantability for serving unfit food. The McGintys ate breakfast at the Island View Café inside the Grand Casinos. Mr. McGinty ordered “Mama’s Eggs and Chops,” which included two grilled pork chops. Mr. McGinty took a bite of the pork chop and “didn’t like it.” Mrs. McGinty finished the remainder from his plate. Hours later, after only consuming water following the "bad" chop, Mrs. McGinty began to feel nauseated, and she experienced diarrhea at the airport. They then caught a flight to Los Angeles, California. About an hour into the flight, Ms. McGinty began vomiting. Mr. McGinty also fell ill. He began to sweat profusely, feel nauseous, and become incontinent. The flight attendants gave him oxygen and moved the couple to the back of the plane. Mr. McGinty vomited and had diarrhea as well. The McGintys did not eat or drink anything on the airplane. When the plane landed in Los Angeles, Mr. McGinty was carried off the airplane on a stretcher by emergency medical technicians. The McGintys were transported to a local hospital by ambulance. On the way to the hospital, Mrs. McGinty began to vomit a large amount of blood. At the hospital, she received two blood transfusions and was treated for an esophageal tear. Mr. McGinty was discharged from the hospital the same day, but Mrs. McGinty stayed for three days. No tests were conducted for food poisoning at the hospital. Upon returning home, Mrs. McGinty saw her general doctor. Prior medical records from her general doctor show Mrs. McGinty had a history of digestive problems. Two months before the alleged food poisoning, her medical records noted that she suffered from “abdominal pain within 30 minutes after eating which is chronic/recurring frequently, . . . [c]rampy/colicky abdominal pain, diarrhea 15-30 minutes after eating which is chronic.” Further, Mrs. McGinty’s medical records show that she had vomited blood in March 2003, which also occurred prior to the alleged food poisoning. Mrs. McGinty’s treating physician from the California hospital concluded Mrs. McGinty’s “upper gastrointestinal bleeding was caused by the severe vomiting, which related to food and drink [she] had prior to the event.” The trial court granted summary judgment in favor of Grand Casinos as to both McGinty claims, and the Court of Appeals affirmed as to negligence, but reversed as to breach-of-implied-warranty. The Mississippi Supreme Court agreed with the appellate court and affirmed. View "McGinty v. Grand Casinos of Mississippi, Inc. - Biloxi" on Justia Law

Joe and Dianne McGinty sued Grand Casinos of Mississippi Inc.-Biloxi alleging negligence and breach of implied warranty of merchantability for serving unfit food. The McGintys ate breakfast at the Island View Café inside the Grand Casinos. Mr. McGinty ordered “Mama’s Eggs and Chops,” which included two grilled pork chops. Mr. McGinty took a bite of the pork chop and “didn’t like it.” Mrs. McGinty finished the remainder from his plate. Hours later, after only consuming water following the "bad" chop, Mrs. McGinty began to feel nauseated, and she experienced diarrhea at the airport. They then caught a flight to Los Angeles, California. About an hour into the flight, Ms. McGinty began vomiting. Mr. McGinty also fell ill. He began to sweat profusely, feel nauseous, and become incontinent. The flight attendants gave him oxygen and moved the couple to the back of the plane. Mr. McGinty vomited and had diarrhea as well. The McGintys did not eat or drink anything on the airplane. When the plane landed in Los Angeles, Mr. McGinty was carried off the airplane on a stretcher by emergency medical technicians. The McGintys were transported to a local hospital by ambulance. On the way to the hospital, Mrs. McGinty began to vomit a large amount of blood. At the hospital, she received two blood transfusions and was treated for an esophageal tear. Mr. McGinty was discharged from the hospital the same day, but Mrs. McGinty stayed for three days. No tests were conducted for food poisoning at the hospital. Upon returning home, Mrs. McGinty saw her general doctor. Prior medical records from her general doctor show Mrs. McGinty had a history of digestive problems. Two months before the alleged food poisoning, her medical records noted that she suffered from “abdominal pain within 30 minutes after eating which is chronic/recurring frequently, . . . [c]rampy/colicky abdominal pain, diarrhea 15-30 minutes after eating which is chronic.” Further, Mrs. McGinty’s medical records show that she had vomited blood in March 2003, which also occurred prior to the alleged food poisoning. Mrs. McGinty’s treating physician from the California hospital concluded Mrs. McGinty’s “upper gastrointestinal bleeding was caused by the severe vomiting, which related to food and drink [she] had prior to the event.” The trial court granted summary judgment in favor of Grand Casinos as to both McGinty claims, and the Court of Appeals affirmed as to negligence, but reversed as to breach-of-implied-warranty. The Mississippi Supreme Court agreed with the appellate court and affirmed. View "McGinty v. Grand Casinos of Mississippi, Inc. - Biloxi" on Justia Law

Oklahoma and the Citizen Potawatomi Nation (the “Nation”) entered into a Tribal-State gaming compact; Part 12 of which contained a dispute-resolution procedure that called for arbitration of disagreements “arising under” the Compact’s provisions. The terms of the Compact indicated either party could, “[n]otwithstanding any provision of law,” “bring an action against the other in a federal district court for the de novo review of any arbitration award.” In Hall Street Associates, LLC. v. Mattel, Inc., 552 U.S. 576, (2008), the Supreme Court held that the Federal Arbitration Act (“FAA”) precluded parties to an arbitration agreement from contracting for de novo review of the legal determinations in an arbitration award. At issue before the Tenth Circuit Court of Appeals was how to treat the Compact’s de novo review provision given the Supreme Court’s decision in Hall Street Associates. The Nation argued the appropriate course was to excise from the Compact the de novo review provision, leaving intact the parties’ binding obligation to engage in arbitration, subject only to limited judicial review under 9 U.S.C. sections 9 and 10. Oklahoma argued the de novo review provision was integral to the parties’ agreement to arbitrate disputes arising under the Compact and, therefore, the Tenth Circuit should sever the entire arbitration provision from the Compact. The Tenth Circuit found the language of the Compact demonstrated that the de novo review provision was a material aspect of the parties’ agreement to arbitrate disputes arising thereunder. Because Hall Street Associates clearly indicated the Compact’s de novo review provision was legally invalid, and because the obligation to arbitrate was contingent on the availability of de novo review, the Tenth Circuit concluded the obligation to arbitrate set out in Compact Part 12 was unenforceable. Thus, the matter was remanded to the district court to enter an order vacating the arbitration award. View "Citizen Potawatomi Nation v. State of Oklahoma" on Justia Law

The gaming privilege in Nev. Rev. Stat. 463.120(6), which was enacted in 2017 through Senate Bill 376 and protects certain information and data provided to the gaming authorities, applies prospectively only and does not apply to any request made before the effective date of this act.The district court applied the gaming privilege to deny a motion to compel discovery. The information was requested through discovery before the effective date of section 463.120(6) but the motion to compel was filed after that date. The Supreme Court held that the district court erred because (1) the pertinent inquiry for determining whether the gaming privilege applied to the information was the date of the initial discovery request seeking that information and not the date the requesting party sought an order from the court to compel the opposing party to comply with that discovery request; and (2) the discovery requests were made before section 463.120(6) became effective, and therefore, the statute did not apply to the information sought by those discovery requests. View "Okada v. Eighth Judicial District Court" on Justia Law

Jerry Rape appealed the circuit court’s dismissal of his action alleging breach of contract and various tort claims against the Poarch Band of Creek Indians ("the Tribe”), PCI Gaming Authority, Creek Indian Enterprises, LLC, and Creek Casino Montgomery ("Wind Creek Casino" or "Wind Creek") (collectively, "the tribal defendants") and casino employees James Ingram and Lorenzo Teague and fictitiously named defendants. Rape and his wife visited Wind Creek Casino one evening in 2010. Rape placed a five-dollar bet at a slot machine, and managed to win the jackpot totaling $1,377,015.30. The screen displayed a prompt to "call an attendant to verify winnings." Rape alleged that at that point he was approached and congratulated by casino employees and patrons and that one casino employee said to him: "[D]on't let them cheat you out of it." Rape alleged that the machine printed out a ticket containing the winning amount of $1,377,015.30 but that casino representatives took possession of the ticket and refused to return it to him. Rape alleged that he was made to wait into the early morning hours with no information provided to him, even though he saw several individuals entering and leaving the room, presumably to discuss the situation. In his complaint, Rape stated that he "was taken into a small room in the rear of [Wind Creek Casino] by casino and/or tribal officials, where he was told, in a threatening and intimidating manner, that the machine in question 'malfunctioned,' and that [Rape] did not win the jackpot of $1,377,015.30. [Rape] was given a copy of an 'incident report,' and left [Wind Creek Casino] empty-handed approximately 24 hours after winning the jackpot." Rape sued the defendants alleging breach of contract; unjust enrichment; misrepresentation; suppression; civil conspiracy; negligence and/or wantonness; negligent hiring, training, and/or supervision; respondeat superior; and spoliation of evidence. For each claim, Rape requested damages in the amount of the jackpot he had allegedly won. The Alabama Supreme Court affirmed the trial court’s dismissal: “[o]n the one hand, if the dispute here arises from activity determined to be ‘permitted by Federal law’ and thus to be the subject of a congressional delegation of ‘regulatory authority’ to the Tribe, then disputes arising out of the same would . . .likewise be a legitimate adjudicative matter for the Tribe, and the circuit court's dismissal of Rape's claims would have been proper on that basis. But conversely, even if it were to be determined that the gaming at issue were illegal under the provisions of IGRA and therefore not the subject of an ‘express congressional delegation’ of regulatory authority to the Tribe, it would be that very illegality that would also prevent our state courts from providing relief to Rape. . . .Under the unique circumstances of this case, therefore, there is no analytical path to an award of relief for Rape.” View "Rape v. Poarch Band of Creek Indians, et al." on Justia Law