Justia Gaming Law Opinion Summaries

During negotiations for a new tribal-state compact between the Pauma Band of Luiseno Mission Indians and California, Pauma sought authorization to offer on-track horse racing and wagering and an expanded set of lottery games. The parties met and corresponded. In 2015, Pauma triggered the 1999 Compact’s dispute resolution process. In January 2016, the state confirmed its agreement to renegotiate the 1999 Compact in full and told Pauma that it “look[ed] forward” to receiving a draft compact from Pauma with Pauma’s “plans for on-track betting.” Rather than propose a draft compact or disclose any information about the on-track facility, Pauma notified the state that it wanted to separately negotiate each item of the compact and proposed modifications to the 1999 Compact’s lottery game language. California rejected Pauma’s piecemeal negotiation approach, rejected Pauma’s lottery game language, and advised that it would send a “complete draft compact to guide our future discussions.” The subsequent 140-page draft addressed a broad array of topics. Pauma never responded but filed suit.The district court held that California satisfied its obligation to negotiate in good faith under the Indian Gaming Regulatory Act, 25 U.S.C. 2701. The Ninth Circuit affirmed. The state agreed to negotiate for the new types of class III gaming that Pauma sought authorization to offer, actively engaged in the negotiations, and remained willing to continue the negotiations when Pauma filed the litigation. View "Pauma Band of Luiseno Mission Indians v. California" on Justia Law

The Supreme Court affirmed the judgment of the court of appeal concluding that the Governor acted lawfully when he concurred in the determination of the United States Secretary of the Interior (Interior Secretary) to allow casino-style gaming on tribal trust land in California, holding that California law empowers the Governor to concur.Under the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq., the Interior Secretary may permit gaming on certain land taken into federal trust for an Indian tribe so long as the Governor of the state where the land is located concurs. At issue was whether the California Governor has the authority to concur in the Interior Secretary's determination to allow gaming on tribal trust land in California where the California Constitution has not granted explicit authority to concur in the cooperative-federalism scheme. The Supreme Court held that because the California Constitution, as amended in 2000, permits casino-style gaming under certain conditions on Indian and tribal lands and the Legislature imposed no restriction to the Governor's concurrence power, the Governor acted lawfully in concurring in the Interior Secretary's determination. View "United Auburn Indian Community of Auburn Rancheria v. Newsom" on Justia Law

The Ninth Circuit affirmed the district court's denial of a preliminary injunction in an action challenging Arizona Revised Statute 5-112(U). Section 5-112(U) requires, among other things, that any simulcast of live horseracing into Arizona that originates outside the state "must be offered to each commercial live-racing permittee … and additional wagering facility" in the state.The panel held that the Interstate Horse Racing Act of 1978 (IHA) does not preempt section 5-112(U). The panel also held that Monarch, a simulcast purchaser and sales agent for racetracks, and Laurel Park, a Maryland racetrack whose races Monarch simulcasts, had not shown a likelihood of success on the merits of their claims. The panel explained that the IHA does not address how the states can regulate simulcasts, and the Arizona statute does not address Laurel Park's statutory right to consent before interstate wagering on its races can be conducted. Therefore, it is not facially impossible to comply with both laws. Furthermore, the Arizona statute does not frustrate the intent of the IHA.The panel rejected plaintiffs' contention that section 5-112(U) is an unconstitutional regulation on commercial speech and a forbidden content-based restriction; rejected plaintiffs' Fourth Amendment and Due Process challenges; held that the Arizona statute does not violate the Dormant Commerce Clause; and held that the statute did not give rise to a Contract Clause claim. View "Monarch Content Management LLC v. Arizona Department of Gaming" on Justia Law

Plaintiffs owned two horses registered to race, but state racing officials determined that the horses were ineligible. The owners sued, alleging denial of due process in disqualifying one of the horses. The district court dismissed the claim based on the absence of a property or liberty interest. The owners asked the district court to alter or amend the judgment. The district court denied this request, and the owners appealed. Finding that the district court acted within its discretion in rejecting these arguments as a basis to alter or amend the judgment, as procedurally and substantively invalid, the Tenth Circuit affirmed the denial of the motion to alter or amend and dismissal of the suit. View "Castanon v. Cathey" on Justia Law

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

The Supreme Court affirmed the judgment of the circuit court denying Quick Charge Kiosk, LLC's action seeking a declaration that its kiosks, which enabled customers to pay for an opportunity to win money through a video game based on chance, were not illegal gambling machines, holding that the kiosks met the definition of a gambling machine under Wis. Stat. 945.01(3).Soon after Quick Charge's kiosks debuted in retail locations, the Attorney General declared that they were illegal gambling machines under section 945.01(3), and therefore, law enforcement seized several kiosks for violating the prohibition on gambling machines. In response, Quick Charge brought this action seeking a declaration that the kiosks were not in violation of any gambling laws. The circuit court declared the kiosks illegal gambling machines, and the court of appeals affirmed. The Supreme Court affirmed, holding that because customers could pay to play a video game that awarded cash prizes based on chance, the kiosks were gambling machines under section 945.01(3)(a). View "Quick Charge Kiosk LLC v. Kaul" on Justia Law

Section 1513 of the Pennsylvania Race Horse Development and Gaming Act prevents the plaintiffs from making political contributions because they hold interests in businesses that have gaming licenses. They sued, claiming First Amendment and Equal Protection violations. The district court concluded that Section 1513 furthers a substantially important state interest in preventing quid pro quo corruption but ruled that the restriction is unconstitutional because the Commonwealth did not draw it closely enough. The court permanently enjoined the enforcement of Section 1513.The Third Circuit affirmed. Limitations on campaign expenditures are subject to strict scrutiny. The government must prove that the regulations promote a “compelling interest” and are the “least restrictive means to further the articulated interest.” Even applying an intermediate threshold, examining whether the statute is “closely drawn,” the Commonwealth does not meet its burden. The overwhelming majority of states with commercial, non-tribal casino gambling like Pennsylvania do not have any political contribution restrictions that apply specifically to gaming industry-related parties. The Commonwealth’s implicit appeal to “common sense” as a surrogate for evidence in support of its far-reaching regulatory scheme is noteworthy in light of the approach taken by most other similarly situated states. View "Deon v. Barasch" on Justia Law

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

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

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