Justia Gaming Law Opinion Summaries
Articles Posted in Constitutional Law
State ex rel. Loontjer v. Gale
The Nebraska Constitution generally prohibits the Legislature from authorizing games of chance but contains an exception for live horseracing under certain conditions. At issue in this case was L.R. 41CA, a resolution to amend Neb. Const. art. III, 24 by permitting wagering on “replayed” horseraces in addition to wagering on live horseraces and specifying how the Legislature must appropriate the proceeds from a tax placed on wagering for live and replayed horseraces. The Secretary of State granted the writ of mandamus sought by the relator in this case, holding (1) the separate-vote provision of Neb. Const. art. XVI, 1 requires the Legislature to present constitutional amendments to voters in a manner that allows them to vote separately on distinct and independent subjects; and (2) L.R. 41CA violates the separate-vote provision, and therefore, article XVI, section 1 bars its placement on the November 2014 general election ballot. View "State ex rel. Loontjer v. Gale" on Justia Law
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Constitutional Law, Gaming Law
Alabama v. Greenetrack, Inc.
The Alabama Supreme Court focused on two appeals (case no. 1101384 and case no. 1110310) and two petitions for writs of mandamus (case no. 1101313 and case no. 1110158) filed by the State of Alabama, all challenging orders entered by a circuit judge in Greene County requiring State officials to return to items seized by the State as contraband pursuant to search warrants previously issued by the Greene Court. In addition, the Supreme Court reviewed a petition for a writ of mandamus (case no. 1130598) filed by the State seeking relief from the refusal of a district judge in Greene County to issue warrants similar to the warrants involved in the first four cases based on evidentiary submissions similar to those provided by the State in those same four cases. The latter case involved the same potential defendants and gaming establishments as the first four cases, as well as similar gambling devices alleged by the State to be illegal. Moreover, the district judge in case no. 1130598 relied upon the judgment of the trial judge in the former cases in refusing to issue the warrants in that case. Upon review of the trial record of all parties' cases involved, the Supreme Court concluded that the circuit court was asked to preemptively adjudicate (within the confines of a motion filed under Rule 3.13, Ala. R. Crim. P.) the lawfulness of property seized as contraband. The Court concluded the Circuit Court had no jurisdiction to do so. Therefore the Supreme Court vacated the orders of the trial court in case no. 1101384 and 1110310 and dismissed those actions. The Court dismissed the appeals in those cases, and the related petitions for writ of mandamus then pending in case no. 1101313 and case no. 1110158. As to case no. 1130598, the Court, by separate order, granted the State's petition for a writ of mandamus and remanded this case for the immediate issuance of the warrants for which the State applied.
View "Alabama v. Greenetrack, Inc. " on Justia Law
Catawba Indian Nation v. South Carolina
The Catawba Indian Nation brought a declaratory judgment action against the State (and Mark Keel) to determine the effect of the Gambling Cruise Act on its gambling rights. The circuit court granted summary judgment to the State, finding: (1) the Tribe's action was precluded by collateral estoppel and/or res judicata, and (2) the Gambling Cruise Act does not confer upon the Tribe the right to offer video poker and similar electronic play devices on its Reservation as the Act does not alter the statewide ban on video poker. The Tribe appealed. Upon review, the Supreme Court affirmed in part, and reversed in part: the circuit court's determination that the Gambling Cruise Act did not authorize the Tribe to offer video poker on its Reservation in contravention of the existing statewide ban on video gambling devices was affirmed; the Tribe's action was not precluded by collateral estoppel or res judicata, reversing this finding by the circuit court. View "Catawba Indian Nation v. South Carolina" on Justia Law
Acra Turf Club, LLC v. Zanzuccki
New Jersey enacted the 2002 Off-Track and Account Wagering Act, N.J. Stat. 5:5-127, providing for establishment of 15 off-track wagering (OTW) facilities. The Act authorized a license for the N.J. Sports and Exposition Authority, conditioned upon NJSEA entering into a participation agreement with other entities that held horse racing permits in 2000 (ACRA and Freehold). NJSEA, ACRA, and Freehold entered into an agreement, allocating permit rights. By 2011, only four facilities had opened. NJSEA had leased control of its tracks to the New Jersey Thoroughbred Horsemen’s Association (NJTHA) and another. The 2011 Forfeiture Amendment provided that permit holders would forfeit rights to any OTW not licensed by 2012, unless they demonstrated “making progress” toward establishing an OTW; forfeited rights would be available to other “horsemen’s organizations” without compensation to the permit holder. NJTHA qualified for forfeited rights. The 2012 Deposit Amendment extended the forfeiture date and allowed a permit holder to make a $1 million deposit for each OTW facility not licensed by December 31, 2011, retaining the “making progress” exception. The Pilot Program Act allowed installation of electronic wagering terminals in some bars and restaurants, by lessees or purchasers of NJSEA-owned racetracks, who could exchange unused OTW licenses to install electronic terminals. NJTHA secured such a license. ACRA and Freehold submitted challenged the constitutionality of the amendments under the Contracts, Takings, Due Process, and Equal Protection Clauses. The Commission determined that both ACRA and Freehold had made progress toward establishing their unlicensed OTW facilities and absolved them of the obligation to submit deposits. The district court dismissed a suit under 42 U.S.C. 1983 and 1988 on Younger abstention grounds. Subsequently, the Supreme Court decided Sprint Communications v. Jacobs, (2013), clarifying the Younger abstention doctrine. The Third Circuit reversed, finding that the action does not fit within the framework for abstention. View "Acra Turf Club, LLC v. Zanzuccki" on Justia Law
Narragansett Indian Tribe v. State
At issue in this case was the Casino Acts, two pieces of legislation providing for the establishment of state-authorized table games at gambling facilities at which Plaintiff, the Narragansett Indian Tribe, received a percentage of income from authorized video lottery terminal (VLT) machines. Plaintiff filed a complaint seeking a declaration that that the Casino Acts were unconstitutional. The superior court concluded that Plaintiff had standing but that Plaintiff failed to meet its burden of proving that the Casino Acts violated the Constitution. Plaintiff appealed, and the State cross-appealed as to the issue of standing. The Supreme Court declined to consolidate the two appeals, and therefore, only the State’s appeal on the issue of standing was before the Court. The Court then affirmed the judgment of the superior court finding that the Tribe was entitled to bring its claims challenging the Casino Act, holding that the reasonable likelihood that the Tribe would suffer a reduction in income from the removal of VLT machines due to the establishment of the table games was sufficient to support a finding that the Tribe had suffered an injury in fact. View "Narragansett Indian Tribe v. State" on Justia Law
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Constitutional Law, Gaming Law
Nat’l Collegiate Athletic Ass’n v. Governor of NJ
Seeking to address illegal sports wagering and to improve its economy, New Jersey sought to license gambling on rofessional and amateur sporting events. Sports leagues sought to block those efforts, claiming, with the United States intervening, that the proposed law violates the Professional and Amateur Sports Protection Act of 1992 (PASPA), 28 U.S.C. 3701, which prohibits most states from licensing sports gambling. New Jersey argued that the leagues lacked standing because they suffer no injury from legalization of wagering on their games and that PASPA was beyond Congress’ Commerce Clause powers. The state claimed that PASPA violates principles under the system of dual state and federal sovereignty: the “anti-commandeering” doctrine, on the ground that PASPA impermissibly prohibits states from enacting legislation to license sports gambling; and the “equal sovereignty” principle, in that PASPA permits Nevada to license sports gambling while banning other states from doing so. The district court enjoined New Jersey from licensing sports betting. The Third Circuit affirmed, holding that the leagues have Article III standing to enforce PASPA and that PASPA is constitutional. The court noted that accepting New Jersey’s arguments would require extraordinary steps, including invalidating a law under the anti-commandeering principle (the Supreme Court has only twice done so) and expanding that principle to suspend commonplace operations of the Supremacy Clause over state activity contrary to federal laws. View "Nat'l Collegiate Athletic Ass'n v. Governor of NJ" on Justia Law
Top Flight Entm’t, Ltd. v. Schuette
A “millionaire party” involves betting on games of chance customarily associated with a gambling casino, using imitation money or chips that have a nominal value equal to or greater than the value of the currency for which they can be exchanged, Mich. Comp. Laws 432.103a(8). Millionaire-party licenses may be issued to a “qualified organization” for up to four consecutive days at a single location. Proceeds from a millionaire party, less “reasonable” expenses incurred to operate the event, must be “devoted exclusively” to the charitable purposes of the licensee. Following denial of licenses for millionaire parties to be held at adult businesses, plaintiffs sued, alleging violations of their First and Fourteenth Amendment rights, under 42 U.S.C. 1983, and that they were deprived of their constitutionally protected status as an “approved lessor” for millionaire parties without due process of law. They claim that the state adopted a blanket policy of denying all such applications in retaliation for Plaintiffs’ exercising their First Amendment rights. The district court dismissed. The Sixth Circuit affirmed in part and reversed in part, holding that plaintiffs’ allegations concerning retaliation must be accepted as true for purposes of a motion to dismiss, but that being an “approved lessor” is not a protected entitlement. View "Top Flight Entm't, Ltd. v. Schuette" on Justia Law
Hest Techs., Inc. v. State ex rel. Perdue
In an effort to regulate gambling, the General Assembly passed N.C. Gen. Stat. 14-306.4, which bans the operation of electronic machines that conduct sweepstakes through the use of an "entertaining display" such as video poker or video bingo. Originally, Plaintiffs were companies that marketed and sold prepaid products. As a promotion, Plaintiffs developed electronic sweepstakes systems where participants were allowed to access a gamestation terminal that revealed the content of the sweepstakes entry using different displays that simulated various game themes. After the General Assembly enacted the current version of section 14-306.4, Plaintiffs challenged the constitutionality of the statute under the First Amendment. The trial court concluded that the law was constitutional. The court of appeals majority concluded that the announcement of the sweepstakes result and the video games were protected speech and that the entire statute was unconstitutionally overbroad. The Supreme Court reversed, holding that the legislation regulated conduct and not protected speech and was therefore constitutional.
View "Hest Techs., Inc. v. State ex rel. Perdue" on Justia Law
Town of Mount Pleasant v. Chimento
Nathan Stallings leased a home in Mt. Pleasant where he lived with his fiancee and a roommate. He used an internet networking site to meet other poker players, and established a regular Sunday night game in his home. Players would buy into the game for a minimum of $5 and a maximum of $20. Respondents Robert Chimento, Scott Richards, Michael Williamson, Jeremy Brestel and John Willis were convicted in municipal court of violating S.C. Code Ann. 16-19-40(a) (2003) which made it unlawful to "play . . . in any house used as a place of gaming . . . any game with cards. . . ." after they were found playing Texas Hold'em and gambling in Stallings' home. On appeal, the circuit court reversed respondents’ convictions finding they were entitled to directed verdicts or, alternatively, that section 16-19-40(a) was unconstitutional. The municipal judge found, based on expert testimony presented by the respondents, that Texas Hold'em is a game of skill. The municipal judge also held that if a game of skill were without the ambit of gaming, then he would acquit the respondents, but that there was no clear indication whether the legislature intended to criminalize only gambling on games of chance. At the hearing, the municipal judge declined to find section 16-19-40 unconstitutional. The circuit court reversed, and the Town appealed that order. The issues before the Supreme Court were reduced to: (1) whether respondents were entitled to directed verdicts because betting money on a game of skill at a residence is not prohibited by section 16-19-40; and (2) if respondents were not entitled to directed verdicts, should their convictions have been set aside because section 16-19-40(a) was unconstitutional? The Court found that the circuit court erred in reversing respondents' convictions, and therefore the order on appeal is itself was reversed. View "Town of Mount Pleasant v. Chimento" on Justia Law
Dept of Texas, Veterans of Foreign Wars, et al v. Texas Lottery Commission, et al
Plaintiffs, a group of nonprofit organizations licensed to conduct bingo games, filed suit challenging restrictions on the Texas Bingo Enabling Act (Bingo Act), Tex. Occ. Code 2001.001 et seq. Plaintiffs challenged provisions in the Bingo Act that prohibited charities from using the money generated by conducting bingo games for lobbying activities or to support or oppose ballot measures. The district court granted summary judgment in favor of plaintiffs and issued a permanent injunction preventing enforcement of the challenged statutory provisions. The court reversed and held that the Bingo Act's restrictions on the use of bingo proceeds for political advocacy were permissible conditions on a government subsidy and did not operate to penalize speech. View "Dept of Texas, Veterans of Foreign Wars, et al v. Texas Lottery Commission, et al" on Justia Law
Posted in:
Constitutional Law, Gaming Law