Justia Government & Administrative Law Opinion Summaries

Lucky Chances, Inc., Rommel Medina, and Ruell Medina (collectively, Licensees) had their gambling licenses renewed by the California Gambling Control Commission (Commission) with additional conditions. The Commission also imposed a 14-day suspension, stayed it, and ordered a monetary penalty based on findings that Rene Medina, a disqualified person, was materially involved in their gambling operation. The trial court issued a writ of administrative mandamus, ordering the Commission to reconsider the penalty, limiting it to $20,000 per violation.The Licensees appealed, arguing that the imposition of any discipline was unauthorized. The Commission cross-appealed, contending the trial court misinterpreted the relevant regulations and statutes. The Court of Appeal of the State of California, Third Appellate District, reviewed the case.The appellate court concluded that the Commission was authorized to impose additional license conditions based on its findings. However, it determined that the Commission could not use California Code of Regulations, title 4, section 12554, subdivision (d) to impose discipline because the Commission did not find that the Licensees violated any relevant law, regulation, or previously imposed license condition. The court modified the judgment to order the Commission to reconsider the discipline imposed in a manner consistent with its opinion and affirmed the judgment as modified. View "Lucky Chances, Inc. v. Cal. Gambling Control Com." on Justia Law

KalshiEx LLC, a regulated commodities exchange, sought to offer "Congressional Control Contracts" allowing individuals to bet on the outcome of the November 2024 congressional elections. The Commodity Futures Trading Commission (CFTC) prohibited these contracts, arguing they constituted gaming or election gambling, which is illegal in many states. Kalshi challenged this decision under the Administrative Procedure Act, claiming the CFTC's determination was arbitrary and capricious.The U.S. District Court for the District of Columbia ruled in favor of Kalshi, finding that the CFTC erred in categorizing the contracts as gaming or gambling. The court vacated the CFTC's decision, reasoning that the term "gaming" did not apply to election contracts and that the contracts did not involve illegal activity under state law. The CFTC then sought a stay of the district court's judgment while it pursued an appeal.The United States Court of Appeals for the District of Columbia Circuit reviewed the CFTC's emergency motion for a stay pending appeal. The court denied the motion, concluding that the CFTC failed to demonstrate that it or the public would suffer irreparable harm without a stay. The court noted that the CFTC's concerns about potential harms, such as market manipulation and threats to election integrity, were speculative and not substantiated by concrete evidence. The court left open the possibility for the CFTC to renew its stay request if more concrete evidence of irreparable harm emerged during the appeal. The administrative stay was dissolved. View "KalshiEX LLC v. CFTC" on Justia Law

In 2020, a federal grand jury indicted David DeQuattro, an architect, and Cedric Cromwell, Chairman of the Mashpee Wampanoag Tribal Council and President of the Mashpee Wampanoag Gaming Authority. They were charged with various federal offenses, including bribery and extortion, related to Cromwell allegedly soliciting and DeQuattro allegedly providing checks and other items of value to protect a contract between DeQuattro's firm and the Gaming Authority for building a casino on tribal land.The United States District Court for the District of Massachusetts held a jury trial where DeQuattro was convicted of one count of federal-program bribery, and Cromwell was convicted of two counts of federal-program bribery and multiple counts of Hobbs Act extortion. However, the District Court later entered a judgment of acquittal on the Hobbs Act-related counts, determining that the Hobbs Act did not clearly abrogate tribal immunity. Both defendants appealed their § 666 convictions, and the government cross-appealed the judgment of acquittal on the Hobbs Act counts.The United States Court of Appeals for the First Circuit reviewed the case. The court reversed both the § 666 convictions and the judgment of acquittal. The court found that the evidence did not suffice to show that the RGB contract was "business" of the Tribe, as required under § 666, because the Gaming Authority, which entered the contract, was a separate legal entity from the Tribe and received almost all its funding from a third party. The court also reversed the District Court's judgment of acquittal on the Hobbs Act convictions, holding that tribal officials do not enjoy immunity from federal criminal prosecution and that the evidence was sufficient to show Cromwell's intent to engage in a quid pro quo arrangement. The case was remanded for further proceedings consistent with this opinion. View "United States v. Dequattro" on Justia Law

A patron at Encore Boston Harbor Casino challenged the casino's practice of redeeming slot-machine tickets. When patrons finish using a slot machine, they receive a TITO ticket, which can be redeemed for cash. The casino offers two redemption options: cashier cages, which provide full cash value, and self-serve kiosks (TRUs), which dispense only bills and issue a TRU ticket for any remaining cents. The TRU ticket can be redeemed at the cashier cage or used in another slot machine. The plaintiff argued that this practice was unfair and deceptive, violating Massachusetts regulations and consumer protection laws.The case was initially filed in Massachusetts state court and then removed to federal court. The district court dismissed the plaintiff's unjust enrichment claim, ruling that an adequate legal remedy was available under Chapter 93A. The court later granted summary judgment in favor of the defendants on the remaining claims, including breach of contract, promissory estoppel, conversion, and unfair and deceptive business practices. The court found that the casino's practice did not violate its internal controls or Massachusetts regulations and that the plaintiff failed to show the practice was unfair or deceptive.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's dismissal of the unjust enrichment claim, agreeing that Chapter 93A provided an adequate legal remedy. The court also upheld the summary judgment on the remaining claims, concluding that the casino's practice of issuing TRU tickets for cents did not violate regulations or constitute unfair or deceptive practices. The court found no evidence that the practice was immoral, unethical, oppressive, or unscrupulous, and ruled that the plaintiff's common law claims also failed. View "Schuster v. Wynn Resorts Holdings, LLC" on Justia Law

Sutter’s Place, Inc., which operates Bay 101 Casino, challenged the City of San Jose's annual cardroom regulation fee, arguing it was an unconstitutional tax imposed without voter approval and violated due process. The fee was equally divided between Bay 101 and Casino M8trix, the only two cardrooms in the city. The plaintiff contended that the fee included costs outside the constitutional exception for regulatory charges and that the equal allocation was unfair.The Santa Clara County Superior Court held a bench trial and found the fee valid, covering reasonable regulatory costs and fairly allocated between the cardrooms. The court determined the fee was for regulatory functions, the amount was necessary to cover costs, and the equal allocation was reasonable given the equal number of tables and benefits to both cardrooms. The court also excluded certain expert testimony from the plaintiff and denied a separate due process trial.The California Court of Appeal, Sixth Appellate District, reviewed the case. It upheld the trial court's finding that the equal allocation of the fee was reasonable but reversed the judgment on other grounds. The appellate court found the trial court erred by not specifically determining whether all costs included in the fee fell within the constitutional exception for regulatory charges. The case was remanded for the trial court to identify and exclude any non-permissible costs from the fee and to conduct further proceedings on the due process claim if necessary. The appellate court also reversed the award of costs to the city and directed the trial court to reassess costs after applying the correct legal standards. View "Sutter's Place, Inc. v. City of San Jose" on Justia Law

Stadium Casino RE, LLC ("Stadium") contested the Pennsylvania Gaming Control Board's ("Board") decision to award a Category 4 slot machine license to SC Gaming OpCo, LLC and Ira Lubert (collectively "SC Gaming"). Stadium argued that Lubert's bid was invalid because it was funded by individuals not authorized to participate in the auction, and that the Board should have awarded the right to apply for the license to Stadium as the second-highest bidder or conducted another auction.The Commonwealth Court initially reviewed the case, where Stadium sought declarations that Lubert's bid was invalid and that the Board lacked authority to consider SC Gaming's application. Stadium also sought an injunction to stop the Board from considering SC Gaming's application and requested a mandamus order to allow Stadium to apply for the license or to conduct another auction. The Board and SC Gaming filed preliminary objections, which the Commonwealth Court overruled, ordering them to file answers. Meanwhile, the Board proceeded with SC Gaming's licensing application, allowing Stadium to intervene but denying its discovery requests. The Board ultimately granted SC Gaming's application and issued an adjudication supporting its decision.The Supreme Court of Pennsylvania reviewed the case, focusing on whether the Board exceeded its statutory authority and failed to comply with mandatory directives in the Gaming Act. The Court found that the Board had the authority to conduct the auction and licensing proceedings and that Section 1305.2(c) of the Gaming Act did not impose jurisdictional limitations on the Board's ability to act. The Court held that the Board's procedures and findings, including the determination that SC Gaming was wholly owned by Lubert, were within its discretion and supported by the evidence. Consequently, the Court affirmed the Board's decision to award the license to SC Gaming and dismissed the action pending in the Commonwealth Court as moot. View "Stadium Casino RE, LLC v. Pennsylvania Gaming Control Board" on Justia Law

The case involves two casino operators, PNK (Baton Rouge) Partnership, PNK Development 8 LLC, PNK Development 9 LLC, and Centroplex Centre Convention Hotel, LLC, who incentivize their patrons with rewards, including complimentary hotel stays. The City of Baton Rouge/Parish of East Baton Rouge Department of Finance and Linda Hunt, its director, discovered through an audit that the operators had not remitted state and local taxes associated with these complimentary stays for several years. The City argued that the operators needed to pay these taxes, while the operators presented various arguments as to why they did not. The City filed a lawsuit in state court, which the operators removed to federal court on diversity jurisdiction grounds.The operators' removal of the case to federal court was challenged by the City, which argued that the tax abstention doctrine (TAD) warranted abstention in this case. The United States District Court for the Middle District of Louisiana agreed with the City, finding that all five TAD factors favored abstention: Louisiana's wide regulatory latitude over its taxation structure, the lack of heightened federal court scrutiny required by the operators' due process rights invocation, the potential for the operators to seek an improved competitive position in the federal court system, the greater familiarity of Louisiana courts with the state's tax regime and legislative intent, and the constraints on remedies available in federal court due to the Tax Injunction Act.The United States Court of Appeals for the Fifth Circuit affirmed the District Court's decision. The Appeals Court found that the District Court had correctly applied the TAD and had not abused its discretion in deciding to abstain. The Appeals Court agreed that all five TAD factors favored abstention and that any doubt about the propriety of removal should be resolved in favor of remand. View "City of Baton Rouge v. PNK" on Justia Law

The case revolves around Stephen Wynn, a casino owner and real estate developer, who was accused by the Department of Justice (DOJ) of acting as an unregistered foreign agent for the People's Republic of China in 2017. The DOJ alleged that Wynn lobbied then-President Trump and his administration on behalf of China to cancel a certain Chinese businessperson's visa or to otherwise remove that person from the United States. Wynn's lobbying efforts ceased in October 2017, and he never registered under the Foreign Agents Registration Act (FARA).The DOJ sued Wynn in 2022, seeking to compel him to register as a foreign agent under FARA. The United States District Court for the District of Columbia dismissed the complaint for failure to state a claim, holding that since Wynn's alleged agency relationship with the Chinese government ended in October 2017, FARA no longer required him to register.The DOJ appealed the decision to the United States Court of Appeals for the District of Columbia Circuit. The appellate court affirmed the district court's decision, holding that under the precedent set by United States v. McGoff, Wynn's obligation to register under FARA expired when he ceased acting as a foreign agent. The court rejected the DOJ's argument that the civil enforcement provision of FARA allowed for an injunction to compel compliance for past violations, stating that the provision only applies to ongoing or imminent violations. Therefore, the court concluded that there was no legal basis for the government to compel Wynn to register now. View "Attorney General v. Wynn" on Justia Law

The case involves Sutter’s Place, Inc., a cardroom operator in San Jose, California, and the California Gambling Control Commission. Sutter’s Place sought to increase the number of gambling tables in its cardroom from 49 to 64. The request was based on a local ballot measure, Measure H, which was approved by San Jose voters. However, the Commission denied the application, arguing that Measure H did not comply with the requirements of the Gambling Control Act (GCA), specifically a provision governing the text of local ballot measures authorizing expansions of gambling. The Commission's decision was upheld by the San Francisco County Superior Court.Previously, the Commission had denied Sutter’s application for more tables, concluding that the San Jose ballot measure authorizing the increase did not comply with the GCA. The superior court denied writ relief, and Sutter appealed. The appellate court affirmed the lower court's decision, rejecting Sutter's arguments that recent state legislation validated San Jose’s ordinance and abrogated the Commission’s decision denying permission to expand.In the Court of Appeal of the State of California, Sutter argued that the Commission lacked authority to deny a gambling expansion application on the ground that a local authorizing measure fails to comply with state law. However, the court rejected each argument and concluded that the trial court did not err in denying Sutter’s writ petition. The court held that the Commission had the authority to refuse an application that conflicted with state law. The court also found that Measure H did not substantially comply with the GCA's requirements for ballot language. Therefore, the court affirmed the trial court's decision. View "Sutter's Place, Inc. v. California Gambling Control Commission" on Justia Law

This case concerns a petition for a writ of mandamus filed by various users of the PredictIt platform against the United States District Court for the Western District of Texas. The petitioners challenged the district court's decision to transfer their lawsuit against the Commodities Futures Trading Commission (CFTC) to the U.S. District Court for the District of Columbia (D.D.C.).PredictIt is an online platform that allows users to trade on the predicted outcomes of political events. In 2022, the CFTC Division of Market Oversight rescinded a “no-action” letter it issued to PredictIt's operator, Victoria University, in 2014. The petitioners, claiming injury from the CFTC's decision, filed a lawsuit against the CFTC alleging that the agency acted arbitrarily and capriciously in violation of the Administrative Procedure Act and withdrew a license without following necessary procedural steps.The United States Court of Appeals for the Fifth Circuit found that the district court abused its discretion by transferring the case to D.D.C. based primarily on court congestion. The appellate court noted that none of the factors used to evaluate whether a case should be transferred under 28 U.S.C. § 1404(a) favored the CFTC's chosen venue of D.D.C. The court also pointed out that the district court's decision had implications beyond the immediate case due to the supervisory nature of writs of mandamus. Consequently, the petition for a writ of mandamus was granted, and the district court was directed to request the return of the case from D.D.C. View "In Re: Kevin Clarke" on Justia Law