Justia Gaming Law Opinion Summaries

TwinSpires, an Oregon-based electronic wagering platform, facilitates interstate betting on horseraces. Under the federal Interstate Horseracing Act (IHA), such betting is lawful if the operator obtains consent from both the state where the bet is accepted and the state where the race occurs, as well as the relevant racetrack. Michigan, however, enacted a law requiring additional state-specific licensing for platforms like TwinSpires to accept bets from Michigan residents. After TwinSpires partnered with Michigan’s only racetrack and obtained the requisite license, its license was suspended when the racetrack temporarily lost its own license. Even after the racetrack’s license was restored, Michigan maintained the suspension of TwinSpires’ license, prompting the company to sue, arguing that Michigan’s requirements conflicted with the IHA.The United States District Court for the Western District of Michigan granted a preliminary injunction, preventing Michigan from enforcing its licensing requirements against TwinSpires. The district court found that the IHA preempted Michigan’s additional licensing regime, concluding that TwinSpires was likely to succeed on the merits of its preemption claim and that other injunction factors favored TwinSpires.The United States Court of Appeals for the Sixth Circuit reviewed the preliminary injunction for abuse of discretion, applying de novo review to legal conclusions and clear error review to factual findings. The Sixth Circuit affirmed the district court’s order, holding that the IHA conflict-preempts Michigan’s licensing requirement for interstate wagering platforms. The court concluded that Michigan’s law imposed an additional regulatory hurdle beyond what the IHA requires, interfering with the federal scheme and frustrating Congress’s intended objectives. The court also found that the remaining factors for a preliminary injunction—irreparable harm, balance of equities, and public interest—favored TwinSpires. View "Churchill Downs Tech. Initiatives Co. v. Mich. Gaming Control Bd." on Justia Law

Gina Burt filed a lawsuit against Playtika, Ltd. and Playtika Holding Corporation in Tennessee state court, seeking to recover alleged gambling losses incurred by Tennessee residents who played Playtika’s online games. Burt's claim was based on Tennessee Code Ann. § 29-19-105, which allows recovery of gambling losses. Playtika removed the case to federal court, invoking jurisdiction under the Class Action Fairness Act (CAFA) and traditional diversity jurisdiction.The United States District Court for the Eastern District of Tennessee remanded the case to state court. The district court determined that it lacked jurisdiction because Burt’s suit was not a “class action” under CAFA, and the losses of the Tennessee players could not be aggregated to meet the amount in controversy requirement for traditional diversity jurisdiction. Playtika appealed the remand order under CAFA’s expedited removal appeal provision.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court’s remand order. The appellate court held that Burt lacked Article III standing to proceed in federal court because she did not allege that she personally suffered any gambling loss. The court found that Burt’s claim to recover losses on behalf of other Tennessee residents did not satisfy the injury-in-fact requirement for standing. Additionally, the court rejected Burt’s argument that she had standing under a qui tam theory, concluding that Tennessee Code Ann. § 29-19-105 is not a qui tam statute. Consequently, the court affirmed the district court’s decision to remand the case to state court. View "Burt v. Playtika, Ltd." on Justia Law

Moody, engaged in harness racing, is the horse trainer of record for his family farm. The Michigan Gaming Control Board (MGCB) suspended Moody’s father, John, in 2010. John publicly criticized and sued the MGCB. An anonymous email led to MGCB’s investigation into whether Moody was only a “paper trainer” for John. When Moody attempted to apply for 2013 licensing, he was disqualified. In January 2013, a consent order was prepared that would have allowed Moody to begin participating in racing in March 2013, but it required Moody to agree not to take legal action against MGCB. Moody did not sign the order; he remained disqualified for six months. In September 2013, Moody was told that he could apply for licensure without any conditions. The ALJ dismissed the case. In 2015, Moody filed suit under 42 U.S.C. 1983, alleging First Amendment retaliation in his disqualification due to his father’s lawsuit, and that he had been deprived of liberty and property interests in his right to engage in harness-racing. The Sixth Circuit affirmed dismissal. MGCB was protected by Eleventh Amendment immunity; neither MGCB nor the individual defendants in their official capacities were “persons” subject to suit under Section 1983. Moody lacked third-party standing for a First Amendment claim because failed to show a hindrance to his father’s ability to protect his own rights. Moody did not have a liberty interest in his license and was not deprived of procedural due process. View "Moody v. Michigan Gaming Control Board" on Justia Law