Justia Gaming Law Opinion Summaries

Articles Posted in Government & Administrative Law
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The Supreme Judicial Court affirmed in part and reversed in part the judgment of the superior court dismissing FBT's claim against the Massachusetts Gaming Commission alleging intentional interference with a contract and granting summary judgment on the remaining regulatory taking claim, holding that summary judgment on the regulatory takings claim was improper.Plaintiff brought this suit against the Commission alleging various claims including tortious interference with contract and a regulatory taking after the Commission refused to allow Plaintiff to receive a "casino-use premium" on the sale of a parcel of land in Everett. The superior court dismissed the tortious interference claim and granted summary judgment on the regulatory takings claim. The Supreme Judicial Court reversed the grant of summary judgment on the regulatory takings claim, holding that there were material disputed facts at issue precluding summary judgment. View "FBT Everett Realty, LLC v. Massachusetts Gaming Commission" on Justia Law

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Plaintiff, a non-profit group composed of small business owners who fish in the Bay Area, sued various government agencies seeking to prevent the enforcement of a commercial fishing prohibition that applies generally in national parks. Plaintiff claims that the Golden Gate National Recreation Area (GGNRA) does not confer with National Park Service with the ability to regulate offshore waters. The district court granted summary judgment to the government entities.The Ninth Circuit affirmed, finding that the text and structure of the GGNRA Act confirm that Congress has given the Park Service administrative jurisdiction over the waters in question. Nothing in the GGNRA Act supports the Plaintiff's position, that the Park Service must first establish a property interest in the waters from the State of California. View "SAN FRANCISCO HERRING ASSOC. V. USDOI" on Justia Law

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After a hearing, the California Gambling Control Commission (Commission) revoked and refused to renew the gambling license of cross-appellant Eric Swallow. The Commission also imposed a monetary penalty and costs against Swallow. Swallow petitioned the trial court for a writ of mandate, challenging the revocation and nonrenewal of his gambling license, the amount of the monetary penalty, and the costs. The trial court granted Swallow’s petition in part and denied it in part, concluding the Commission did not violate Swallow’s due process rights when it revoked and refused to renew Swallow’s gambling license, except that the Commission may have relied on unproven misconduct. The trial court therefore remanded to the Commission “to ensure that Swallow is not disciplined based on misconduct that was not proven.” The trial court also concluded the amount of the monetary penalty imposed by the Commission was not supported by law, and the costs could only be assessed by the ALJ on remand. It therefore vacated the penalty and costs imposed and remanded for the Commission to redetermine the amount of the penalty and to refer the issue of costs to the ALJ. Both the Commission and Swallow appealed. The Court of Appeal concluded: (1) Business and Professions Code section 19930(c), when considered within the statutory and regulatory framework of the Gambling Control Act, did not authorize the monetary penalty; (2) the Commission had jurisdiction to revoke Swallow’s gambling license; (3) the Commission did not violate Swallow’s due process rights; (4) Swallow failed to present a proper argument challenging the sufficiency of the evidence; and (5) the trial court properly remanded the issue of costs for further proceedings. The Court modified the judgment granting the peremptory writ of mandate to order the Commission to reconsider the monetary penalty in a manner consistent with its opinion instead of the trial court’s order. View "Swallow v. Cal. Gambling Control Commission" on Justia Law

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Debtor, licensed under North Dakota’s pari-mutuel wagering system, filed for bankruptcy in 2004. Ten years later, the district court ruled that the state was not authorized to collect certain taxes from the Debtor. North Dakota agreed to pay the estate $15 million. Creditors asserted claims. Although the state constitution provides that “the entire net proceeds of such games of chance are to be devoted to educational, charitable, patriotic, fraternal, religious, or other public-spirited uses,” North Dakota did not raise the rights of any charities.In 2018, the bankruptcy court ruled on the claims. North Dakota filed a new proof of claim. The court concluded that the state lacked parens patriae authority to assert claims on behalf of charities. The Eighth Circuit Bankruptcy Appellate Panel (BAP) remanded. On remand, the state attempted to add a breach of contract claim. The bankruptcy court denied that motion and concluded that the contract claim had no merit. The court also rejected a constitutional-statutory claim.The BAP affirmed, rejecting arguments that North Dakota law requires that charities, not Debtor, recover the remaining tax settlement funds and that the court erred when it disallowed the contract claim. The state constitution concerns the legislature and does not govern the actions of private parties such as Debtor. Debtor paid the taxes originally; the reimbursement of those improperly-paid taxes should inure to the benefit of Debtor after distribution under the bankruptcy priority scheme. View "North Dakota v. Bala" on Justia Law

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Appellee Greenwood Gaming & Entertainment Inc. (“Greenwood”) operated Parx Casino (“Parx”), located in Bensalem, Pennsylvania. During 2014, as part of its efforts to encourage slot machine and table game play, Greenwood distributed to patrons of Parx who played its slot machines and table games various “promotions, giveaways and direct player development:” items given away included cash, department store gift cards, and items of personal property. Parx also gave away tickets to attend live concerts and entertainment performances. In 2016, Greenwood filed a petition for refund with the Board of Appeals of the Department of Revenue (“Board of Appeals”) for the calendar year 2014, contending that it was entitled under Section 1103 of the Pennsylvania Gaming Act to exclude from the taxable revenue attributable to its table games and slot machines the value of all cash and personal property it distributed to the players of those games. The Pennsylvania Supreme Court concluded that concert tickets were not services within the meaning of Section 1103, and so were excludible from these taxable revenues. View "Greenwood Gaming v. Pennsylvania" on Justia Law

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In this proposed class action suit challenging the rules of blackjack at the Encore Boston Harbor Casino the Supreme Judicial Court affirmed the order of the superior court judge granting the motion to dismiss brought by MGM Blue Tarp Redevelopment, LLC (MGM), holding that the rules authorized MGM to offer 6:5 payout blackjack.The Encore Boston Harbor Casino was operated by Wynn Resorts Holdings, LLC, Wynn MA, LLC, and Wynn Resorts, Ltd. (Encore). Plaintiffs, the gamblers challenging the rules of the game, sued Encore and MGM, contending that there were entitled to three dollars for every two dollars bet (3:2) instead of the six dollars for every five dollars bet (6:5) that they received when playing at tables requiring smaller bets. Plaintiffs argued that the Massachusetts Gaming Commission's blackjack rules did not clearly authorize payouts of 6:5 except with games played by dealing rules different from those used at Plaintiffs' tables. The superior court allowed MGM's motion to dismiss. The Supreme Judicial Court affirmed, holding that Plaintiffs understood the rules and the stakes and that deference was due to the Commission's interpretation of its blackjack rules. View "DeCosmo v. Blue Tarp Redevelopment, LLC" on Justia Law

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The Ninth Circuit affirmed the district court's judgment in favor of the DOI, the Bureau of Indian Affairs, federal officials, and the Spokane Tribe of Indians, in an action brought by the Kalispel Tribe of Indians, challenging the Secretary of DOI's decision determining that the Spokane Tribe of Indians' proposed gaming establishment on newly acquired off-reservation land would not be detrimental to the surrounding community. Kalispel raised challenges pursuant to the the Administrative Procedure Act, the National Environmental Policy Act, and the Indian Gaming Regulatory Act.The panel held that IGRA requires the Secretary to weigh and consider the various interests of those within the surrounding community when deciding whether additional off-reservation gaming would be detrimental to the surrounding community. A showing that additional gaming may be detrimental to some members of the surrounding community, including an Indian tribe, does not dictate the outcome of the Secretary's two-step determination. The panel agreed with the DC Circuit and rejected Kalispel's argument that any detriment to Kalispel precluded the Secretary from issuing a favorable two-part determination. Rather, the panel concluded that the Secretary had the authority to issue a two-step determination, and the Secretary's decision to issue a favorable decision here was neither arbitrary nor capricious. The panel declined to reach the merits of Kalispel's contention, which was not advanced in the district court, that the Secretary previously announced a policy that additional off-reservation gaming would not be approved if a nearby Indian tribe could show that additional gaming would be detrimental to it. Finally, the panel concluded that Kalispel has not shown that the Secretary failed to consider its claimed harms or to comply with the relevant statutes and regulations, and thus it has not shown that the Secretary violated the federal government's trust duty owed to Kalispel. View "Kalispel Tribe of Indians v. U.S. Department of the Interior" on Justia Law

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The State of Alabama appealed a circuit court order that dismissed the State's claims seeking injunctive and declaratory relief "to abate a public nuisance of unlawful gambling," pursuant to section 6-5-120, Ala. Code 1975, against some, but not all, of the defendants. The circuit court certified its order as final pursuant to Rule 54(b), Ala. R. Civ. P. However, we determine that the order was not appropriate for Rule 54(b) certification; therefore, the Alabama Supreme Court dismissed the appeal. View "Alabama v. Epic Tech, Inc., et al." on Justia Law

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George Glassmeyer sent Freedom of Information Act (FOIA) requests to the South Carolina Lottery Commission for information relating to million-dollar lottery winners. The Lottery Commission claimed the information sought was "personal" and "disclosure . . . would constitute unreasonable invasion of personal privacy." Instead, the Lottery Commission disclosed the hometown and state of each winner, the amount of each prize, the date of each prize, and the game associated with each prize. Glassmeyer responded that the Lottery Commission's disclosure did not satisfy his requests. The Lottery Commission then filed this lawsuit seeking a declaratory judgment that the release of lottery winners' names, addresses, telephone numbers, and forms of identification would constitute an unreasonable invasion of personal privacy under subsection 30-4-40(a)(2) and could be withheld. The Lottery Commission also sought injunctive relief preventing Glassmeyer from obtaining the information. The circuit court granted the Lottery Commission's motion and declared the release of the lottery winners' personal identifying information as an unreasonably invasion of personal privacy, and also entered an injunction permanently restraining Glassmeyer from seeking the lottery winners' full names, addresses, telephone numbers, and forms of identification. The court of appeals reversed, by the South Carolina Supreme Court reversed: "a proper injunction could restrict Glassmeyer only from seeking this information from the Lottery Commission. The Lottery Commission had no right to request an injunction permanently restraining Glassmeyer from seeking this information from any source, and the circuit court had no authority to prevent Glassmeyer from doing so." View "South Carolina Lottery Commission v. Glassmeyer" on Justia Law

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Wilton Rancheria, a Sacramento area Indian tribe, was federally recognized in 1927. The 1958 Rancheria Act disestablished Wilton and 40 other reservations. In 1979, several California rancherias, including Wilton, sued. The government agreed to restore Indian status. Wilton was erroneously excluded from the settlement. In 2009, the Department of the Interior restored Wilton’s federal recognition and agreed to “accept in trust certain lands formerly belonging to” Wilton. Wilton petitioned to acquire 282 acres near Galt for a casino. A draft environmental impact statement (EIS), under the National Environmental Policy Act (NEPA), 42 U.S.C. 4321–4347, identified alternatives, including a 30-acre Elk Grove parcel. Wilton changed its preference and requested that the Department acquire the Elk Grove location. Objectors responded that acquiring the Elk Grove location would moot pending state-court suits.The Department’s final EIS identified the Elk Grove location as the preferred alternative. The Principal Deputy Assistant Secretary– Indian Affairs, Roberts, signed the Record of Decision (ROD) pursuant to delegated authority. Roberts had served as Acting Assistant Secretary– Indian Affairs (AS–IA), but after his acting status lapsed under the Federal Vacancies Reform Act, Roberts continued to exercise the non-exclusive AS–IA functions. Black, who became Acting AS–IA in the new administration, signed off on the acquisition.Objectors filed suit before the issuance of the Department’s ROD and unsuccessfully sought a temporary restraining order. The D.C. Circuit affirmed summary judgment for the Department, rejecting claims that the Department impermissibly delegated the authority to make a final agency action to acquire the land to an official who could not wield this authority, was barred from acquiring land in trust on behalf of Wilton’s members, and failed to comply with NEPA. View "Stand Up For California! v. United States Department of the Interior" on Justia Law