Justia Gaming Law Opinion Summaries

The Ninth Circuit affirmed the district court's grant of summary judgment for the government defendants, in an action brought by the Community challenging Interior's determination that it is ineligible for gaming for purposes of the Indian Gaming Regulatory Act (IGRA). The panel held that the agency's determination was correct, because the IGRA clearly and unambiguously requires federal recognition by the Secretary of the Department of the Interior before a tribe may qualify to participate in Indian gaming. The panel also held that the Frank's Landing Act did not authorize the Community to engage in class II gaming. View "Frank's Landing Indian Community v. National Indian Gaming Commission" on Justia Law

In 2000, the Tribe had agreed to pay Monroe $265 million for Monroe’s 50% ownership interest in the Casino, giving the Tribe a 100% ownership interest. In 2002, the Tribe agreed to another $200 million debt in exchange for a continued gaming license from the Michigan Gaming Control Board (MGCB). In 2005, the Tribe created a new entity (Holdings), which became the Casino’s owner; pre-existing entities owned by the Tribe became Holdings' owners to allow the Tribe to refinance and raise capital to meet its financial obligations. The restructuring was approved by the MGCB, conditioned on the Tribe’s adherence to strict financial covenants. In 2005, Holdings transferred approximately $177 million to various entities. At least $145.5 million went to the original owners of Monroe. At least $6 million went to the Tribe. For three years, the Tribe unsuccessfully attempted to raise additional capital to meet its financial obligations. In 2008, the related corporate entities) filed voluntary petitions for Chapter 11 bankruptcy. The Trustee alleged that the 2005 transfers were fraudulent and sought recovery under 11 U.S.C. 544, 550. The district court and Sixth Circuit affirmed the bankruptcy court’s dismissal of the complaint on the basis of tribal sovereign immunity. The court rejected arguments that Congress intended to abrogate the sovereign immunity of Indian tribes in 11 U.S.C. 106, 101(27). View "Buchwald Capital Advisors LLC v. Sault Ste. Marie Tribe" on Justia Law

The State of Arizona and Williams Gaming, Inc. (WMS), a manufacturer of electronic gaming machines, initiated a civil asset forfeiture against money Randy Binning had won, in part, in Tunica, Mississippi, casinos. Binning was indicted in Mississippi for violations of the Mississippi Gaming Control Act. A circuit court in Mississippi, however, dismissed all criminal charges against Binning with prejudice. Despite the dismissal of charges in Mississippi, Arizona continued its prosecution of the civil-forfeiture action. Binning sought a writ of prohibition from the Mississippi Supreme Court, clarifying to the state of Arizona that any further collateral attacks upon the dismissed criminal charges under Mississippi law should have been barred as res judicata. Because Binning failed to provide sufficient authority that a court in Mississippi may issue a writ of prohibition to a court outside of the state, the Mississippi Supreme Court affirmed denial of the writ. View "Binning v. State of Mississippi" on Justia Law

Land Holdings I, LLC, d/b/a Scarlet Pearl, LLC (“Casino”), sought to expunge a lien filed by GSI Services, LLC (“GSI”). The chancellor denied the Casino’s petition to expunge the lien because GSI performed work at the Casino within ninety days of filing its lien. Finding no error, the Mississippi Supreme Court affirmed the chancellor’s order. View "Land Holdings I, LLC d/b/a Scarlet Pearl, LLC v. GSI Services, LLC" 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

Marco Guldenaar filed the provisional application from which the 196 patent application claims priority in 2010. The 196 patent application, entitled “Casino Game and a Set of Six-Face Cubic Colored Dice,” relates to “dice games intended to be played in gambling casinos, in which a participant attempts to achieve a particular winning combination of subsets of the dice.” The Patent Trial and Appeal Board affirmed the rejection of claims 1–3, 5, 7–14, 16– 18, and 23–30 the application under 35 U.S.C. 101 for claiming patent-ineligible subject matter. The Federal Circuit affirmed, holding that the claims are directed to the abstract idea of rules for playing a dice game and the only arguably inventive concept relates to the dice markings, which constitute printed matter. View "In re: Marco Guldenaar Holding B.V." on Justia Law

At issue before the Pennsylvania Supreme Court in this matter was whether sales or use taxes must be paid in relation to two distinct items: the purchase of a closed-circuit horse-racing simulcasting system, and the payment of royalties for intellectual property used in conjunction with the operation of video poker machines. For the Taxpayer's off-track wagering locations, it used video poker machines. Taxpayer entered into a service contract with Teleview Racing Patrol, Inc., pursuant to which Teleview supplied equipment such as screens, satellite dishes, and closed-circuit television feeds. These items were used to provide live displays at each OTW facility of races occurring at Pocono Downs and other tracks across the country. Teleview provided the equipment for this system and, per the agreement, it also supplied personnel to install, maintain, and operate that equipment. In relation to the video poker games, Taxpayer purchased machines from International Gaming Technologies, PLC (“IGT”), on which it paid taxes which are not in dispute. In accordance with a separate intellectual property agreement, Taxpayer also paid IGT royalty fees for intellectual property associated with the various different “themes,” i.e., different poker games that would run on the machines. After a Pennsylvania Department of Revenue audit, Taxpayer was assessed approximately $340,000 in unpaid sales and use taxes, mostly stemming from Taxpayer’s payments to Teleview under the service contract. In challenging the assessment, Taxpayer concluded it had erroneously paid the $13,000 in taxes on its payment of royalty fees to IGT; thus, it sought a refund of those monies. After the Department denied relief, Taxpayer sought review of both matters in the Commonwealth Court, which consolidated the appeals. The court found Teleview consolidated taxable and nontaxable charges on its invoices. The panel thus concluded that Taxpayer had failed to present documentary evidence specifying which portions of the billed amounts were nontaxable, as required by departmental regulations. The Court also rejected Taxpayer's request for a refund on taxes it paid for IGT's royalty fees. The Pennsylvania Supreme Court reversed the Commonwealth Court's order insofar as it upheld the Board of Finance and Revenue's determination relative to the IGT contract, but affirmed in all other respects. View "Downs Racing, LP v. Pennsylvania" on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment to California and the United States in an action seeking injunctive relief prohibiting the Iipay Nation of Santa Ysabel from continuing to operate Desert Rose Casino.The panel held that the Indian Gaming Regulatory Act (IGRA) protects gaming activity conducted on Indian lands. However, a patron's act of placing a bet or wager on a game of Desert Rose Bingo (DRB) while located in California constitutes gaming activity that is not located on Indian lands. Therefore, it violates the Unlawful Internet Gambling Enforcement Act and was not protected by the IGRA. The panel further held that, even if Iipay was correct that all of the "gaming activity" associated with DRB occurred on Indian lands, the patrons' act of placing bets or wagers over the internet while located in a jurisdiction where those bets or wagers was illegal makes Iipay's decision to accept financial payments associated with those bets or wagers a violation of the UIGEA. View "California v. Iipay Nation of Santa Ysabel" on Justia Law

The Supreme Court reversed the judgment of the district court in favor of Wynn Las Vegas, LLC in its breach of contract action to collect $1 million in unpaid casino markers from Appellant, holding that the district court erred when it precluded Appellant from testifying at trial by video conference from Italy and excluded evidence of his intoxication.The Supreme Court remanded this case for a new trial, holding (1) the district court abused its discretion under the Nevada Supreme Court Rules Part IX-B(B) when it summarily denied Appellant’s request to testify at trial via video conference and an interpreter; and (2) the district court abused its discretion when it applied an incorrect standard to exclude any evidence of intoxication. View "LaBarbera v. Wynn Las Vegas, LLC" on Justia Law

The Supreme Court reversed the circuit court’s judgment reversing the decision of the South Dakota Commission on Gaming, which revoked Defendant’s gaming support license and banned him from entering any gaming establishment in South Dakota, holding that the sanction imposed by the Commission was within its discretion.The Commission revoked Defendant’s license and imposed a sanction after concluding that Defendant mishandled money while working in a casino and that he was untruthful in the subsequent investigation. The circuit court concluded that several of the Commission’s factual findings were clearly erroneous and that the sanction imposed by the Commission was an abuse of discretion. The Supreme Court reversed, holding that the Commission (1) did not err by concluding that Defendant acted dishonestly or fraudulently; and (2) did not abuse its discretion by revoking Defendant’s license and adding him to the exclusion list. View "South Dakota Commission on Gaming v. Johnson" on Justia Law