Justia Gaming Law Opinion Summaries

Articles Posted in Government & Administrative Law
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Through mediation efforts in connection with a federal lawsuit pending in the United States District Court for the Western District of Oklahoma, Respondent, the Honorable J. Kevin Stitt, Governor of Oklahoma, negotiated and entered into new tribal gaming compacts with the Comanche Nation and Otoe-Missouria Tribes to increase state gaming revenues. The tribal gaming compacts were submitted to the United States Department of the Interior, and the Department of the Interior deemed them approved by inaction, only to the extent they were consistent with the Indian Gaming Regulatory Act (IGRA). The Comanche Nation and Otoe-Missouria Tribes were not parties to this matter; these tribes were sovereign nations and have not submitted to the jurisdiction of the Oklahoma Supreme Court. The limited question presented to the Oklahoma Supreme Court was whether Governor Stitt had the authority to bind the State with respect to the new tribal gaming compacts with the Comanche Nation and Otoe-Missouria Tribes. To this, the Supreme Court held he did not. The tribal gaming compacts Governor Stitt entered into with the Comanche Nation and Otoe-Missouria Tribes authorized certain forms of Class III gaming, including house-banked card and table games and event wagering. Any gaming compact to authorize Class III gaming had to be validly entered into under state law, and it was Oklahoma law that determined whether the compact was consistent with the IGRA. The tribal gaming compacts Governor Stitt entered into with the Comanche Nation and Otoe-Missouria Tribes were invalid under Oklahoma law. The State of Oklahoma was not and could not be legally bound by those compacts until such time as the Legislature enacted laws to allow the specific Class III gaming at issue, and in turn, allowing the Governor to negotiate additional revenue. View "Treat v. Stitt" on Justia Law

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HWCC-Tunica, LLC, and BSLO, LLC, had casino members’ rewards programs that allowed members to earn entries into random computerized drawings to win prizes. In 2014, after recalculating their gross revenue and deducting the costs of prizes from their rewards programs’ drawings, HWCC and BSLO filed individual refund claims for the tax period of October 1, 2011, through August 31, 2014. The Mississippi Department of Revenue (MDOR) denied the refund claims in 2015. HWCC and BSLO appealed, and MDOR and the Mississippi Gaming Commission (MGC) filed a joint motion for summary judgment, arguing the plain language of Mississippi Code Section 75-76-193 (Rev. 2016) does not allow a casino to deduct the cost of prizes purchased for a rewards program’s drawings because “these promotional giveaways are not the result of ‘a legitimate wager’ as used in [Mississippi Code Section] 75-76-193.” After a hearing on the motion, the chancellor determined that Section 75-76-193 does not allow HWCC and BSLO to deduct the cost of the prizes and that there were no genuine issues of material fact. After review, the Mississippi Supreme Court found the chancellor erred by giving deference to the MDOR’s and the MGC’s interpretations of Code Section 75-76-193. That error notwithstanding, the Supreme Court found the chancellor reached the right conclusion: that no genuine issues of material fact existed. Accordingly, the Supreme Court affirmed the chancellor’s grant of summary judgment. View "HWCC-Tunica, Inc. v. Mississippi Dept. of Revenue" on Justia Law

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Plaintiffs filed suit challenging the Secretary's issuance, under the Indian Gaming Regulatory Act (IGRA), of Secretarial Procedures which authorize the North Fork Rancheria of Mono Indians to operate class III gaming activities on a parcel of land in Madera, California. The district court granted summary judgment in favor of the Secretary and intervenor.The Ninth Circuit affirmed in part as to plaintiffs' Johnson Act claim, holding that Secretarial Procedures are an exception to the prohibitions of the Johnson Act and thus they comply with the Administrative Procedure Act. The panel vacated and remanded in part as to the National Environmental Policy Act (NEPA) claim, holding that the IGRA does not categorically bar application of NEPA because the two statutes are not irreconcilable and do not displace each other, and because a contrary result would contravene congressional intent and common sense. Finally, the panel vacated and remanded in part as to the Clean Air Act (CCA) claim, holding that Secretarial Procedures are categorically exempt from the CAA's requirement of a conformity determination. View "Stand Up for California! v. U.S. Department of the Interior" on Justia Law

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Plaintiff cardrooms, filed suit challenging the Secretary's approval of a Nevada-style casino project on off-reservation land in the County of Madera, California by the North Fork Rancheria of Mono Indians, a federally recognized tribe. The district court granted summary judgment in favor of the Department and Secretary.The Ninth Circuit held that the Tribe's jurisdiction over the Madera Parcel operates as a matter of law and the Tribe clearly exercised governmental power when it entered into agreements with local governments and enacted ordinances concerning the property; because neither the Enclave Clause nor 40 U.S.C. 3112 are implicated here, neither the State's consent nor cession is required for the Tribe to acquire any jurisdiction over the Madera Parcel; and the Indian Reorganization Act does not offend the Tenth Amendment because Congress has plenary authority to regulate Indian affairs. Therefore, the Secretary's actions were not arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. View "Club One Casino, Inc. v. Bernhardt" on Justia Law

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In a case brought in the Pennsylvania Supreme Court's original jurisdiction, Petitioner Sands Bethworks Gaming, LLC, challenged a recent amendment to Pennsylvania gaming law in which casinos paid a supplemental assessment on slot-machine revenue, and the funds are then distributed primarily to underperforming slot-machine facilities to be used for marketing and capital development. Sands alleged that the amendment violated the Pennsylvania Constitution’s requirement of uniform taxation, its mandate that all enactments have a public purpose, and its rule against special legislation. Sands also claimed the scheme violated the Equal Protection and Due Process Clauses of the Fourteenth Amendment to the federal Constitution. The Supreme Court concluded the amendments were indeed unconstitutional, and the offending parts could be severed from the rest of the statute. Any assessment monies paid to the Commonwealth pursuant to the amended gaming law were ordered to be refunded. View "Sands Bethworks Gaming v. PA Dept of Revenue et al" on Justia Law

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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

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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

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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

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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

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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