Justia Gaming Law Opinion Summaries

Mount Airy #1, LLC operated a hotel and casino located in Mount Pocono. Mount Airy challenged the constitutionality of Section 1403(c) of the Pennsylvania Race Horse Development and Gaming Act. That section levied a “local share assessment” against all licensed casinos’ gross slot machine revenue. According to Mount Airy, the statutory provision violated the Uniformity Clause of the Pennsylvania Constitution because it imposed grossly unequal local share assessments upon similarly situated slot machine licensees. After review of the parties' arguments, the Pennsylvania Supreme Court held that the local share assessment was a non-uniform tax of the sort prohibited by Article 8, Section 1 of the Pennsylvania Constitution. Therefore, the Court severed Subsections 1403(c)(2) and (c)(3) from the Gaming Act. View "Mount Airy #1, LLC v. Pa. Dept. of Revenue, et al." on Justia Law

The 2009 Video Gaming Act (230 ILCS 40/1)) legalized the use of video gaming terminals in licensed establishments, including bars, veterans’ organizations, and truck stops, and authorizes the Illinois Gaming Board to supervise all video gaming operations governed by the Act. A video gaming terminal may be placed in a licensed establishment only if the establishment has entered into a written use agreement with the licensed terminal operator. A use agreement may be assigned only from one licensed terminal operator to another. Action, an unlicensed terminal operator, executed “Exclusive Location and Video Gaming Terminal Agreements” with each of 10 establishments, stating that Action and the establishments would obtain licenses. In 2012 the parties amended their agreements by adding clauses, purportedly “necessary in order for the Agreement to comply with the [Act] and the rules and regulations," including clauses providing that Action could assign its rights and acknowledging that the agreement and the amendment “are subject to and contingent upon the [Gaming Board’s] review.” In 2012, the Board denied Action’s license application based on findings that Acton employees were associated with individuals who had been convicted of illegal gambling. Action assigned its rights under the agreements to J&J, a licensed operator. The establishments were not yet licensed. Subsequently, each of the establishments signed separate location agreements with Accel, a licensed operator. J&J and Action sued; the circuit courts ruled that the location agreements were not use agreements, but were valid contracts, and enjoined Accel from operating terminals at the establishments. The appellate court and the Illinois Supreme court held that the circuit courts lacked subject-matter jurisdiction because the Board has exclusive authority over contracts for the placement of video gaming terminals. The comprehensive statutory scheme vests jurisdiction over video gaming operations with the Board; the agreements purport to control placement and operation of video gaming terminals. View "J&J Ventures Gaming, LLC v. Wild, Inc." on Justia Law

Plaintiff, individually and purportedly on behalf of others similarly situated, filed suit against GameStop for breach of contract, unjust enrichment, money had and received, and violation of Minnesota’s Consumer Fraud Act (CFA), Minn. Stat. 325F.68, et seq. Plaintiff alleged that GameStop's disclosure of personally identifiable information (PII) to a third party (Facebook) violated an express agreement not to do so. The district court granted GameStop's motion to dismiss based on plaintiff's lack of standing. The court concluded that plaintiff provided sufficient facts alleging that he is party to a binding contract with GameStop, and GameStop does not dispute this contractual relationship; GameStop has violated that policy; and plaintiff has suffered damages as a result of GameStop's breach. The court also concluded that plaintiff has standing to bring his breach-of-contract claim and to bring his other claims. The court concluded, however, that the privacy policy unambiguously does not include those pieces of information among the protected PII. Therefore, the protection plaintiff argues GameStop failed to provide was not among the protections for which he bargained by agreeing to the terms of service, and GameStop thus could not have breached its contract with plaintiff. Plaintiff's Minnesota CFA claims fail for similar reasons. Finally, plaintiff has not alleged a claim for unjust enrichment or the related claim of money had and received. View "Carlsen v. GameStop, Inc." on Justia Law

In 2008, Johnston, a horse racetrack executive, promised a $100,000 campaign contribution to then-Governor Blagojevich in exchange for his signature on a bill to tax the largest casinos in Illinois for the direct benefit of the Illinois horse racing​ industry. After Blagojevich’s corruption came to light, the casinos sued the racetracks, alleging a conspiracy to violate the federal Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961, and state‐law claims for civil conspiracy and unjust enrichment. A jury awarded the casinos $25,940,000 in damages, which was trebled under RICO to $77,820,000. The Seventh Circuit affirmed in part, holding that the jury did not have legally sufficient evidence to support a verdict finding a conspiracy to engage in a “pattern” of racketeering activity, as required for liability on a RICO conspiracy theory. The casinos are still entitled to the $25,940,000 in damages on the state‐law claims, but not to have those damages trebled under RICO. View "Empress Casino Joliet Corp. v. Balmoral Racing Club, Inc." on Justia Law

Plaintiff applied to the State Harness Racing Commission to renew his driver/trainer license for horse harness racing in Maine. The Commission denied the application because Plaintiff had previously been denied a license by a racing authority in New York. The Commission based its conclusion that the reciprocal disciplinary action provision of the harness racing licensing statute prohibited the issuance of the Maine license even though New York had subsequently rescinded its license denial. The Supreme Judicial Court vacated the judgment and remanded for further proceedings, holding that the Commission erred in its interpretation of the statute. View "Mosher v. State Harness Racing Comm’n" on Justia Law

Eugene McCain filed an initiative petition that sought to amend Mass. Gen. Laws ch. 23K to authorize the Gaming Commission to award one additional license for a slot machine parlor. The Attorney General certified the petition. Plaintiffs, ten registered voters and residents of Suffolk County, brought an action against the Attorney General and the Secretary of the Commonwealth, contending that the petition violated tw restrictions set forth in Article 48 of the Amendments to the Massachusetts Constitution, which sets forth certain standards for initiative petitions. The Supreme Judicial Court denied relief, holding that the petition did not violate Article 48’s restrictions and was therefore properly certified by the Attorney General. View "Bogertman v. Attorney General" on Justia Law

JAC filed suit contending that the NIGC violated the National Environmental Policy Act (NEPA), 42 U.S.C. 4321-4370h, when it approved the Tribe's gaming ordinance without first conducting a NEPA environmental review. The district court denied JAC's petition for a writ of mandamus under the Administrative Procedure Act (APA), 5 U.S.C. 706, holding that NIGC’s approval of the 2013 gaming ordinance was not “major federal action” within the meaning of NEPA. Even if NIGC's approval of the ordinance was a major Federal action, the court held that an agency need not adhere to NEPA where doing so would create an irreconcilable and fundamental conflict with the substantive statute at issue. In this case, the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. 2701–2721, requires NIGC to approve a gaming ordinance or resolution pursuant to a mandatory deadline. There is no question that it would be impossible for NIGC to prepare an environmental impact statement (EIS) in the ninety days it has to approve a gaming ordinance. Contrary to JAC’s arguments, NIGC’s approval of the Tribe’s gaming ordinance without conducting a NEPA environmental review did not violate NIGC’s obligations under NEPA because "where a clear and unavoidable conflict in statutory authority exists, NEPA must give way.” Accordingly, the court affirmed the denial of plaintiff's requested writ of mandamus. View "Jamul Action Comm. v. Chaudhuri" on Justia Law

The Nation filed suit against defendants contending that the federal Indian Gaming Regulatory Act (IGRA), 25 U.S.C. 2701‐2721, preempts the application of a local anti‐gambling ordinance to a Nation‐owned gaming facility located on land owned by the tribe (the Lakeside facility). The district court dismissed the complaint for lack of subject matter jurisdiction, and, following a motion for reconsideration, concluded that the individual plaintiffs lacked standing. The court concluded that the district court had subject matter jurisdiction, as it was not required to resolve questions of tribal law to hear the lawsuit. The court held that it was entitled to defer to the BIA's recognition of an individual as authorized to act on behalf of the Nation, notwithstanding the limited issue that occasioned that recognition. The court also concluded that the individual plaintiffs have standing to sue because they will suffer an injury distinct from any felt by the Nation. Accordingly, the court vacated the district court's order and remanded for further proceedings. View "Cayuga Nation v. Tanner" on Justia Law

Plaintiff was evicted from all properties owned, operated, or managed by Caesers Entertainment Corporation, which owns and operates a number of casinos throughout the United States. Plaintiff filed this action alleging that, under the common law and Nev. Rev. Stat. 463.0129(1)(e), Caesars could not exclude him without cause. The district court granted Caesars’ motion to dismiss for failure to state a claim. The Supreme Court affirmed, holding (1) pursuant to section 463.0129, gaming establishments generally have the right to exclude any person from their premises, but the reason for exclusion must not be discriminatory or unlawful; and (2) Plaintiff failed to plead or demonstrate that his exclusion from Caesars’ properties was for unlawful reasons, and therefore, the district court did not err in dismissing the complaint. View "Slade v. Caesars Ent. Corp." on Justia Law

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