Justia Gaming Law Opinion Summaries

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

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

The Miccosukee Indian Tribe and one of its members raised an affirmative defense that revenue distributions from gaming activities were exempt from taxation as Indian general welfare benefits under the Tribal General Welfare Exclusion Act (GWEA), 26 U.S.C. 139E. The Eleventh Circuit held that the distribution payments could not qualify as Indian general welfare benefits under GWEA because Congress specifically subjected such distributions to federal taxation in the Indian Gaming Revenue Act (IGRA), 25 U.S.C. 2701 et seq.; the member waived any arguments as to penalties or the amount assessed against her, and the tribe lacked a legal interest in those issues; and the district court did not err in entering judgment against the tribe because the tribe intervened as of right and the Government sought to establish its obligation to withhold taxes on the distributions. View "United States v. Jim" on Justia Law

The Professional and Amateur Sports Protection Act (PASPA) makes it unlawful for a state or its subdivisions “to sponsor, operate, advertise, promote, license, or authorize by law or compact . . . a lottery, sweepstakes, or other betting, gambling, or wagering scheme based . . . on” competitive sporting events, 28 U.S.C. 3702(1), and for “a person to sponsor, operate, advertise, or promote” those same gambling schemes if done “pursuant to the law or compact of a governmental entity,” 3702(2), but does not make sports gambling itself a federal crime. PAPSA allows existing forms of sports gambling to continue in four states. PAPSA would have permitted New Jersey to permit sports gambling in Atlantic City within a year of PASPA’s enactment but New Jersey did not do so. Voters later approved a state constitutional amendment, permitting the legislature to legalize sports gambling in Atlantic City and at horse-racing tracks. In 2014, New Jersey enacted a law that repeals state-law provisions that prohibited gambling schemes concerning wagering on sporting events by persons 21 years of age or older; at a horse-racing track or a casino in Atlantic City; and not involving a New Jersey college team or a collegiate event. The Third Circuit held that the law violated PASPA. The Supreme Court reversed. When a state repeals laws banning sports gambling, it “authorize[s]” those schemes under PASPA. PASPA’s provision prohibiting state authorization of sports gambling schemes violates the anti-commandeering rule. Under the Tenth Amendment, legislative power not conferred on Congress by the Constitution is reserved for the states. Congress may not "commandeer" the state legislative process by directly compelling them to enact and enforce a federal regulatory program. PASPA’s anti-authorization provision dictates what a state legislature may and may not do. There is no distinction between compelling a state to enact legislation and prohibiting a state from enacting new laws. Nor does the anti-authorization provision constitute a valid preemption provision because it is not a regulation of private actors. It issues a direct order to the state legislature. View "Murphy v. National Collegiate Athletic Association" on Justia Law

The Indian Gaming Regulatory Act allows a federally-recognized Indian tribe to conduct gaming on lands held in trust by the Secretary of the Interior for the tribe’s benefit, 25 U.S.C. 2710(b)(1), 2703(4)(B) if the lands had been taken into trust as of the Act’s effective date of October 17, 1988. The Act permits gaming on lands that are taken into trust after that date “as part of . . . the restoration of lands for an Indian tribe that is restored to Federal recognition” to ensure “that tribes lacking reservations when [the Act] was enacted are not disadvantaged relative to more established ones.” In 1992, the Mechoopda Tribe regained its federal recognition; 12 years later, the Tribe asked the Secretary to take into trust a 645-acre Chico, California parcel, so that the Tribe could operate a casino, arguing that the parcel qualified as “restored lands.” The Secretary agreed. Butte County, where the parcel is located, sued. The district court and D.C. Circuit upheld the Secretary’s decision, rejecting an argument that the Secretary erred by reopening the administrative record on remand. The court noted the Secretary’s findings concerning the Tribe’s historical connection to the land and whether current Tribe members were descendants of the historical Tribe and concluded that the Secretary’s substantive decision survives arbitrary-and-capricious review. View "Butte County, California v. Chaudhuri" on Justia Law