Articles Posted in Gaming Law

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In 2013, the citizens of Linn County approved a referendum to permit gambling games in the county. Thereafter, a county organization applied to the Iowa Racing and Gaming Commission for a license to operate a new gambling structure. The Commission denied the organization’s application. In 2015, Eugene Kopecky, a county resident, filed a petition for declaratory order with the Commission asking the Commission to answer questions regarding the criteria it may considering licensure decisions. The Iowa Gaming Association, an association comprised of eighteen existing gambling licensees, intervened because the answers to Kopecky’s questions would affect the existing licensees. The Commission then announced its decision. Relevant to this appeal, the Commission ruled that it may consider the economic effect of a new gaming operation on existing gaming facilities when deciding whether to issue a new gaming license. The district court affirmed the Commission’s declaratory order. The Supreme Court affirmed, holding that the rule allowing the Commission to consider the economic effect of a new gaming operation on existing gaming facilities when deciding whether to issue a new gaming license is not “[b]eyond the authority delegated to the agency by any provision of law or in violation of any provision of law” under Iowa Code 17A.19(10)(b). View "Kopecky v. Iowa Racing & Gaming Commission" on Justia Law

Posted in: Gaming Law

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Wild Rose Entertainment and Signature Management Group (SMG) entered into an agreement that delineated the parties' relationship with regard to future state casino projects. After Wild Rose was awarded a gaming license to develop a casino in Emmetsburg, it terminated the agreement. SMG sued Wild Rose for breach of contract, and a jury found Wild Rose breached the agreement. During the Emmetsburg action, Wild Rose was awarded a gaming license to develop a casino in Clinton. SMG then filed a separate action against Wild Rose, alleging that it breached paragraph 5A of the agreement by failing to negotiate in good faith with SMG for the management of the Clinton casino. Paragraph 5A was litigated in the Emmetsburg action. The district court granted summary judgment for Wild Rose, concluding the doctrine of claim preclusion barred SMG's current claim. The court of appeals affirmed after finding Wild Rose repudiated the entire agreement, which required SMG to seek damages for all remaining rights of performance under the contract in the first lawsuit. The Supreme Court affirmed, holding (1) no genuine issue of material fact existed as to whether Wild Rose repudiated the agreement, and (2) the doctrine of claim preclusion barred the action. View "Pavone v. Kirke" on Justia Law

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Gerald Kirke and Wild Rose Entertainment (collectively, defendants), entered into an agreement with John Pavone and Signature Management Group (collectively, plaintiffs), stating the ownership and management relationship between the parties upon the opening of casino projects within the state. Wild Rose later terminated the agreement, and plaintiffs sued defendants for breach of contract and other claims. The district court sustained defendants' motion for a directed verdict on most of plaintiffs' claims but allowed the breach of contract claims. After a jury trial, the district court found Wild Rose breached the agreement and awarded plaintiffs ten million dollars in damages. Defendants filed a motion for a new trial, which the district court denied. The court of appeals reversed the judgment and remanded the case for judgment in favor of defendants. On review, the Supreme Court vacated the decision of the appellate court and affirmed the judgment of the district court, holding, inter alia, that the district court did not err in (1) overruling defendants' motion for a directed verdict on plaintiffs' breach of contract claims; (2) allowing the jury to award damages for a period of as much as thirty years; and (3) denying defendants' motion for a new trial. View "Pavone v. Kirke" on Justia Law