Justia Gaming Law Opinion Summaries

Articles Posted in Kentucky Supreme Court
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The Supreme Court reversed the ruling of the court of appeals that the term "person" in Kentucky's Loss Recovery Act, Ky. Rev. Stat. Chapter 372, is limited to a natural person, holding that the Commonwealth had standing to bring this suit.The Commonwealth, through the Secretary of the Justice and Public Safety Cabinet, filed the underlying complaint seeking to recover under statutory treble damages for money lost by its citizens playing real-money poker on an illegal internet website called PokerStars, which was owned by Defendants (collectively, PokerStars). The court entered partial summary judgment against Defendants based on the actual amount Kentucky players lost on PokerStars' websites. The court of appeals reversed, holding that the Commonwealth lacked standing because it did not qualify as "any other person" under the Act. The Supreme Court reversed, holding (1) the Commonwealth qualified as a "person" under the Act; (2) the Commonwealth had standing to bring this lawsuit; and (3) the manner in which the trial court calculated damages in this case was proper. View "Commonwealth ex rel. Brown v. Stars Interactive Holdings Ltd." on Justia Law

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In this case considering the Kentucky Horse Racing Commission's regulations as applied to historical horse racing the Supreme Court reversed the order of the circuit court determining that the Encore system constitutes a "pari-mutuel system of wagering," holding that the trial court misapplied the applicable regulation as a matter of law.The Commission, the Department of Revenue and several horse racing associations sought judicial approval for wagering on historical horse racing. The Family Foundation of Kentucky, Inc. was permitted to intervene and challenged both the validity of regulations and the premise that wagering on historical horse races was truly pari-mutuel wagering. The trial court concluded that the Encore system constituted a pari-mutuel system of wagering approved by the Commission. The Supreme Court reversed, holding that the Encore system does not create a wagering pool among patrons such that they are wagering among themselves, as required for pari-mutuel wagering. View "Family Trust Foundation of Kentucky, Inc. v. Kentucky Horse Racing Commission" on Justia Law

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Plaintiff, a California resident and leading owner of thoroughbred race horses, claimed a bay filly in a claiming race at Churchill Downs in Louisville, Kentucky. Plaintiff filed a complaint seeking a declaration that certain Kentucky thoroughbred racing regulations that restrict the transfer and racing of claimed thoroughbreds (Article 6 restrictions) violate the Commerce Clause of the United States Constitution. The trial court entered summary judgment in favor of the Kentucky Horse Racing Commission. The Supreme Court affirmed, holding (1) Plaintiff had a sufficient case or controversy to sustain this action; but (2) Article 6 restrictions survive the strict scrutiny applicable to laws that appear facially discriminatory. View "Jamogotchian v. Ky. Horse Racing Comm’n" on Justia Law