Category Archives: Court Case/Decision

The Trump Administration and 30 other Advocacy Groups Filed Supreme Court Briefs supporting the NFL and other’s Opposition to the New Jersey Sports Gambling Case

Casino Watch Focus has reported on the ongoing saga of events surrounding New Jersey’s attempt to legalize sports betting in their state. All attempts have resulted in failure and this latest attempt has managed to reach the Supreme Court. The issue at hand is the constitutionality of the Professional and Amateur Sports Protection Act (PASPA). The Federal government has long held sport betting to be illegal outside of a few jurisdictions. They passed PASPA and allowed existing jurisdictions like Las Vegas to continue to offer it. The rest of the states would not be allowed to legalize it. Years later, after New Jersey missed its window to seek sports betting, they have decided they and other states should be allowed to regulate it and that Federal Government interference is a violation of federalism. The NFL, along with the other pro sports leagues and the NCAA, have long opposed expansion of sports betting. Casino Watch Focus reported that they filed their own brief to the Supreme court outlining that the federal government cant command a state government into an action, an act known as impermissible commandeering, but they are fully allowed to the federal government to preempt state action to contravene federal policy. The Department of Justice has long held this same belief and now the Trump Administration has formally filed its own brief outlining PASPA supporting arguments. An online source reports: 

President Donald Trum has been feuding with the NFL in recent weeks over the national anthem controversy. But the Trump administration, via the *Solicitor General’s office*, is supporting the NFL in its ongoing case to stop *New Jersey* from offering sports betting. The Solicitor General says that SCOTUS should uphold the lower courts’ finding that New Jersey’s partial repeal of its sports betting ban did not go far enough to be legal under PASPA.

The leagues have argued that the New Jersey law essentially licenses casinos and horse racing tracks to conduct sports wagering. That puts the state in violation of PASPA, the SG argues. New Jersey argues that PASPA unconstitutionally commandeers it to keep its own laws on the books when it comes to not allowing sports betting. But the SG argues PASPA’s “preemption of state laws authorizing sports-gambling schemes does not violate the Tenth Amendment.”

In addition to the briefs filed by the major sports organizations, the NCAA, and the DOJ, 30 advocacy and political organization have combined to offer their own brief. The addressed the federalism issue head on, but also expanded on why the federal government has compelling interest is preempting gambling expansion on the state level, namely the social costs. An online source explains:

On Monday a broad coalition of organizations led by Stop Predatory Gambling filed an amicus brief (“friends of the court”) in the Supreme Court of the United States, supporting the NCAA, NFL and major professional sports in their opposition to New Jersey’s case seeking to bring sports betting into the state.

Stop Predatory Gambling And a Range of Political and Advocacy Groups Support PASPA In a Brief Focusing on Social Costs of Gambling. The 30 groups, which include the Public Health Advocacy Institute and Concerned Women for America, spend the majority of the 33-page brief discussing negative effects and social costs of gambling.

The groups are “united in their opposition to the exploitation of American communities through commercial gambling” the brief reads.

 Later in the brief, the groups highlight research papers discussing gambling addiction, personal bankruptcies and elevated divorce rates associated with problem gambling, as well as financial costs to states themselves (such as crime) in connection with increased gambling activity. The paper also points a 2015 study by Rachel A. Volberg et al. of the University of Massachusetts School of Public Health and Health Sciences, showing a higher prevalence of gambling problems among sports bettors as compared with other forms of gambling, such as instant lottery games and casino games.

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Unsurprisingly, Casino Lobby Joins New Jersey in Attempt to Sway Supreme Court in favor of Legalized Sports Betting

Casino Watch Focus has reported on the many attempts by New Jersey to legally allow sports betting in their state, despite federal law that makes it illegal. Every attempt made has resulted in the courts shutting down the illegal sports gambling. The case will finally be resolved one way or another later this year when the Supreme Court will examine the issue. The list of opponents of this expanded sports betting is long and includes all the major sports and collegiate organizations such as the NFL, MLB, NBA, NHL and the NCAA. Not surprisingly, the casino lobby is coming to the side of New Jersey and they have submitted a brief to the Supreme Court. The Washington Examiner reports: 

The American Gaming Association filed a brief on Tuesday supporting Republican New Jersey Gov. Chris Christie in his upcoming Supreme Court fight with top U.S. athletic leagues over sports betting. Christie’s team argues that federal law banning sports betting violates states protections under the 10th Amendment. More than two decades ago, New Jersey failed to take advantage of a window in federal law to run sports gambling, but then decided to do so on its own in 2011.

The National Collegiate Athletic Association challenged the New Jersey law, along with the NBA, NFL, NHL, and Major League Baseball. The Supreme Court has yet to set a date for oral arguments this term in the sports gambling case, which will be closely watched as its outcome could change sports gambling rules throughout the country.

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Florida goes after Pari-Mutuels as it Seeks to Enforce Designated-Player Card Games Ruling

Casino Watch Focus has reported on the ongoing and developing situation regarding designated player banked card games. This form of card game was offered for four years before its legality was challenged. Last year, however, the court determined the games to be illegal and a violation of the Seminole Compact which outlined exclusive card games at Seminole casinos. As recently reported by Casino Watch Focus that ruling is being challenged in appeals court and is set to be heard next month. In the mean time, swift enforcement has begun to stop these illegal card games. An online source explains:

Florida gambling chiefs have launched legal action against two pari-mutuel venues, the Sarasota Kennel Club and Pensacola Greyhound Racing, for their alleged failure to remove so-called “designated player games” from their premises.

Meanwhile, many of Florida’s other cardrooms and racetracks are bracing themselves for similar action, as the state moves to crack down on the controversial games.

This action is especially important given litigation was dropped by the Seminole’s in exchange for the state agreeing truly enforce the courts ruling. The online source continues:

The case had initially been brought by the State against the Seminoles for their refusal to stop offering banked games once their initial five-year compact expired in 2015. But the tribe countersued over the exclusivity violation, forcing the state into a humiliating retreat. In July, both parties agreed to an end to litigation and the state vowed it would take “aggressive enforcement action” against pari-mutuels that violated the ban on the games it had previously permitted.

Nick Iarossi, a lobbyist for Jacksonville Greyhound Racing, told Sunshine State News that the state’s actions this week show it intends to live up to its word. “They’re going to come in. They’re going to check tape. They’re going to watch games being played live. And if they see anything out of compliance being done, they’re going to issue administrative complaints and fines,” he said. “So everybody is double- and triple-checking to make sure they’re in compliance.” 

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UPDATE: Florida Decoupling Decision Draws Challenge

Casino Watch Focus has reported on the ongoing efforts to decouple dog racing from gambling venues, thus allowing them to operate stand alone slot machine gambling parlors. True decoupling efforts have been prevented, but the first approved case of de facto decoupling just happened in Florida. An old 1980 law was instrumental in the Magic City case and lead to the recent decoupling that will allow the facility to supplement actual races with jai alai matches. That ruling, however, is now being challenged, but its unclear if the challenge will be heard. The Miami CBS affiliate reports: 

Hartman and Tyner, Inc., and H&T Gaming, Inc., which run the Broward pari-mutuel, have filed a motion requesting that the Department of Businessand Professional Regulation vacate or reconsider the decision last month related to Magic City Casino in Miami.

The decision by the department’s Division of Pari-Mutuel Wagering would allow Magic City, operated by WestFlagler Associates, to replace dog races with jai alai matches and continue offering lucrative slots. The approval dealt with a long-controversial issue known as a “summer jai alai” permit.

In their motion, attorneys for the Broward pari-mutuel’s operators said, in part, that their effort to intervene in the issue was improperly dismissed by the department. Also, they pointed to a 2004 constitutional amendment that allowed slot machines in Miami-Dade and Broward counties and contend that Magic City is only allowed to offer slots in conjunction with a greyhound-racing permit — not a summer jai alai permit.

“As an existing greyhound permit holder and slot machine gaming operator, intervenors (Hartman and Tyner and H&T Gaming) have a right to be heard as to how the constitutional and statutory provisions are being interpreted as it relates to allowing new permits to be used for expanding slot machine operations,” the motion said. “Intervenors assert that slot machine gaming at West Flagler’s facility pursuant to its summer jai alai permit should not be authorized and would be illegal.”

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Florida Casino Expansion denied in Gambling Permit Case

Casino Watch Focus has reported on the efforts to expand gambling in Florida. The state has an agreement with the Seminole’s to allow tribal casinos in state, but other gambling efforts are more small scale and limited to horse and dog racing as well as various pari-mutual gambling locations. Efforts also took place to bring full-scale, Vegas style casino’s to the area and those too were shut down. That hasn’t stopped outside companies from trying to find new ways into the Florida market. The most recent example involves the sale of a license with the intent to move a facility and expand gambling greatly. The Saint Peters Blog has explained those efforts and how they have been shut down:

State gambling regulators this week shot down a request by a South Florida gambling permit holder who wanted sell the permit and allow the next operator to build on a new location in Broward County.

The *Department of Business and Professional Regulation on Monday said both sales of permits and any relocation of gambling—both time-consuming processes—have to be OK’d by the department’s Division of Pari-Mutuel Wagering, which regulates gambling in the state. The decision further cements the state’s control over where and how gambling is offered, particularly after a permit is granted.

The department’s “final order” also is a win for the Seminole Tribe of Florida, which asked to intervene in the case. The Seminoles, who operate the Hard Rock Hotel & Casino in Hollywood, had said allowing gambling licenses to be moved within a county “would provide out-of-state companies (with) an incentive to (buy) a license, possibly resulting in increased business competition for the Tribe.”

The company has a deal with an unnamed buy who was hoping to build a casino in a new location. The buyer knows it needs to relocate and build a new casino to be profitable, so this likely means the deal is off and there wont be significant new casino gambling expansion facing Florida families. 

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Florida Court of Appeals to Hear Designated-Player Card Games Case

Casino Watch Focus has reported on the recent rise and fall of designated player banked card games in Florida. This style of card game seeks to avert Florida state gambling laws and for a while, the state wasn’t shutting them down. Once it was brought up that they were illegal forms of gambling and one that also violated the Seminole Compact’s exclusivity agreement, the state had to act. The issue went to court were they ruled illegal. As it might come as no surprise, the decision has now been appealed. An online source reports:

The legal battle related to greatly profitable *designated-player card games* at pari-mutuel facilities across the state of Florida is to be continued soon. It came to the knowledge of Casino Guardian that the matter is scheduled to be heard in September by a local *appeals court*.

The appeal was filed by *Florida Department of Business and Professional Regulation*, which is responsible for regulation and monitoring of local gambling venues. The Department is now challenging a ruling issued in 2016 by E. Gary Early, an Administrative Law Judge. In his decision from *August 2016*, Judge Early said that the way the so-called designated-player card games are being operated in a *way that violates the ban* on “banked” card games that had been imposed by the state.

According to notice which was published on an online court list with pending cases for trial, the *1st District Court of Appeal* is set to host the appeal’s hearing on *September 12th*.

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Florida and the Seminole Tribe finally reach a new Gambling agreement

Casino Watch Focus has reported on the ongoing struggle between Florida and the Seminole Tribe to come to an agreement over exclusivity rights in the local gambling landscape. The part of the Seminole Compact that dealt with table games and other exclusivity rights has been in need of a new agreement for some time now, and each new gambling bill that has been suggested seemingly strained the nature of such an agreement. Additionally, earlier iterations of a new compact have included far more gambling expansion proposals than legislators would allow. Now, it appears interested parties have come to an agreement and it reestablishes exclusivity and doesn’t allow an uptick in gambling expansion. The Miami Herald reports:

Blackjack will continue uninterrupted at casinos run by the Seminole Tribe of Florida, parimutuels will be ordered to stop offering controversial competing card games, and the State of Florida will have access to more than $340 million in new money, under a settlement agreement reached late Wednesday between the tribe and state regulators.

Under the agreement, the Seminole Tribe has agreed to continue monthly revenue sharing payments to the state in return for the state’s agreeing to enforce a judge’s ruling that allows it to continue to operate blackjack and other banked card games at its casinos for another 13 years.

The Florida Department of Business and Professional Regulation must also enforce a rule that prevents competing casinos and card rooms from operating blackjack and slot machines that mimic the banked card games the tribe is entitled to operate exclusively in Florida.

“The settlement is one of the rare incidents where everybody benefits,” said Barry Richard, attorney for the Seminole Tribe. “Nobody gave up anything. The state has an immediate infusion of money, and the tribe gets to continue its games.” 

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