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Donovan v grand victoria casino

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Donovan v grand victoria casino -

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However, on August 4, , Grand Victoria's director of table games advised Donovan that Grand Victoria had decided to ban Donovan from playing blackjack, though Donovan would still be allowed to play other casino games.

After Donovan indicated that he would not comply with Grand Victoria's request, he was evicted and placed on Grand Victoria's list of excluded patrons.

Donovan filed suit against Grand Victoria, alleging breach of contract and seeking a declaratory judgment that Grand Victoria could not exclude him from playing the game of blackjack for counting cards.

The trial court granted summary judgment in favor of the casino on both counts. The Court of Appeals affirmed summary judgment for Grand Victoria on the breach of contract claim, 1 but it reversed summary judgment on the exclusion issue, holding that Donovan was entitled to a declaratory judgment that Grand Victoria had no right to exclude Donovan from blackjack for counting cards.

The Court reasoned that Indiana has implemented a comprehensive scheme for regulating riverboat gambling which partially abrogates a casino's common law right of exclusion.

Grand Victoria sought, and we granted, transfer, thereby vacating the opinion of the Court of Appeals. As set forth above, the Court of Appeals held that Grand Victoria had no right to exclude Donovan from blackjack for counting cards because Indiana has implemented a comprehensive scheme for regulating riverboat gambling that partially abrogates a casino's common law right of exclusion.

Grand Victoria maintains that its exclusion of Donovan from the game of blackjack was proper because at common law the arbitrary exclusion of a patron from places of privately owned amusements was not actionable absent a statute prohibiting such exclusion.

One of the time-honored principles of property law is the absolute and unconditional right of private property owners to exclude from their domain those entering without permission.

The patron in Bailey had sought an order compelling access to a privately owned theatre. He is under no implied obligation to serve the public and This long-standing principle of property law has been frequently reaffirmed, subject only to statutorily imposed prohibitions on exclusions for characteristics such as race and religion.

But we have never had occasion to explore the application of this rule to the riverboat casino industry, which is the precise issue in this appeal.

Donovan's principal contention is that any common law right that casinos might enjoy to exclude patrons from its premises has been preempted by the Indiana Gaming Commission's "IGC's" exhaustive regulation of the riverboat casino industry, especially its comprehensive regulation of every aspect of the game of blackjack.

Grand Victoria responds that nothing in the Indiana Riverboat Gambling Act purports to abrogate common law exclusion rights; thus, absent express direction from the Legislature, the right remains intact.

The Legislature authorized riverboat casino gambling in "to benefit the people of Indiana by promoting tourism and assisting economic development.

At the same time, the Legislature created the IGC and gave it the exclusive power and duty to administer and regulate riverboat gaming in Indiana.

The IGC has promulgated minimum standards for blackjack. Additionally, individual casinos are permitted to submit additional rules for blackjack, including rules that can be used as countermeasures against card counting.

However, prior approval by the IGC is required before any additional rules may be employed by a casino. And although the rules contain numerous provisions prohibiting certain conduct by patrons playing the game of blackjack, the mental exercise of counting cards is not expressly prohibited.

Relevant to this litigation, the IGC has also promulgated regulations governing a casino's right to exclude certain patrons.

The IGC rules "do [ ] not preclude a casino licensee or operating agent from evicting a person from its casino gambling operation for any lawful reason.

Specifically the IGC requires. The Court of Appeals held that the "strict regulation" of the casino industry evinced by the IGC's rules governing exclusion of certain patrons, coupled with the Legislature's decision to grant the IGC exclusive authority to set rules of riverboat casino games, specifically the game of blackjack, were dispositive evidence of the Legislature's intent to abrogate a casino's common law right of exclusion.

In Bailey, we recognized that regulation of an industry in isolation does not abrogate a private business's common law right of exclusion. Moreover, even if the IGC has been granted exclusive authority over the game of blackjack and the exclusion of patrons, which we do not decide here, it has delegated this authority to the holders of riverboat permits under its rulemaking authority.

In the words of the IGC, rules promulgated by the Commission "do [ ] not preclude a casino licensee or operating agent from evicting a person from its casino gambling operation for any lawful reason.

Commission rules also delegate to the holders of riverboat permits exclusion rights "for reasons deemed necessary by the riverboat licensee.

We agree with Grand Victoria that such provisions at the very least do not evince an express intent by the Commission to alter common law exclusion rights.

Beyond this, the overwhelming weight of authority emanating from gaming jurisdictions rejects the notion that comprehensive regulation of the gaming industry, even where statutory or regulatory provisions directly address the exclusion of persons from such facilities, preempts a proprietor's common law right to arbitrarily exclude patrons.

Thistledown Racing Club, Inc. Apache Greyhound Park, Inc. Donovan contends in the alternative that he has a legitimate claim of entitlement — a property interest in supplementing his income through gambling.

In part, the Court of Appeals imputed a protectable property interest to Donovan from the absence of a particularized IGC rule prohibiting the practice of card counting.

See Donovan, N. Grand Victoria responds that silence concerning the propriety of card counting "does not imply that licensees may not exercise their common law right to exclude card-counters.

If anything, regulatory silence indicates intent to leave familiar exclusion practices undisturbed. We find Uston v. In Uston, a card counter named Ken Uston the same card counter who was the subject of the New Jersey litigation referenced in footnote 5 above and discussed below argued that since the State of Nevada had enacted measures that required the exclusion of a limited class of undesirable persons, of which Uston was not a member, it thereby undertook the affirmative duty to compel the admittance of all persons, such as Uston, who were not named on the list compiled by the Nevada Gaming Commission.

The court held that "[s]uch an argument strains logic. It is the judgment of this Court that NRS We agree with the reasoning of the federal district court in Nevada.

The mere fact that IGC regulations do not expressly compel the expulsion of card counters from casino facilities does not confer upon a patron an affirmative right of access to a casino's facilities.

Donovan also claims the benefit of an IGC regulation concerning the interpretation of its rules. Donovan cites no support for the proposition that permitting card counting enhances integrity or public confidence in gaming operations or regulation.

We see no basis for changing the common law on these grounds. Resorts Int'l Hotel Inc. Uston had been excluded from a New Jersey casino for card counting.

Like Donovan, Uston argued that a casino's common law right arbitrarily to evict patrons from its premises had been preempted by exhaustive gaming regulations governing New Jersey's casino industry.

The Uston court held that the Casino Control Act gave New Jersey's gaming commission the exclusive authority to exclude patrons based upon their strategies for playing licensed casino games and that any common law right the casino may have had to exclude Uston for these reasons was abrogated by the Act and outweighed by Uston's right of access.

At the same time, the Legislature created the IGC and gave it the exclusive power and duty to administer and regulate riverboat gaming in Indiana.

Under Indiana Code section , the Legislature endows the IGC with the authority to adopt rules for riverboat gambling for the following purposes: The IGC has promulgated minimum standards for blackjack.

The regulations require a riverboat licensee to submit rules of the game for blackjack if the casino intends to offer its patrons this game.

Additionally, individual casinos are permitted to submit additional rules for blackjack, including rules that can be used as countermeasures against card counting.

However, prior approval by the IGC is required before any additional rules may be employed by a casino. And although the rules contain numerous provisions prohibiting certain conduct by patrons playing the game of blackjack, the mental exercise of counting cards is not expressly prohibited.

Under this section, "blackjack" means an ace and second card with a point value of ten dealt as the initial two cards to a player or the dealer.

A casino blackjack game starts with the dealer presenting and shuffling the cards. The dealer spreads the cards out on the table for inspection, and then shuffles by hand or by an approved automatic shuffling device.

The patron puts money on the table and the money is exchanged for chips. Before the first card is dealt for a round of play, a player may make a wager in an amount not less than the minimum or more than the maximum amount set for the table.

After two cards have been dealt to each player and to the dealer, each player must indicate a decision to "double down, surrender, split pairs, stand, draw, make an insurance wager, or make an even money wager.

The dealer deals additional cards as necessary based upon the player decisions. The player wins if 1 "[t]he sum of the player's cards is twenty-one or less, and the sum of the dealer's cards is more than twenty-one"; 2 "[t]he sum of the player's cards exceeds that of the dealer without exceeding twenty-one"; 3 "[t]he player has a blackjack, and the dealer does not"; or 4 the player has a combination of cards "based on pro motions offered by the riverboat licensee if the executive director has approved the promotion.

The rules contain the following prohibitions: Relevant to this litigation, the IGC has also promulgated regulations governing a casino's right to exclude certain patrons.

The IGC rules "do [] not preclude a casino licensee or operating agent from evicting a person from its casino gambling operation for any lawful reason.

Specifically the IGC requires. Such list shall be comprised of persons who have been barred from a riverboat gaming operation for reasons deemed necessary by the riverboat licensee.

At minimum, the eviction criteria shall include the following behavior: The Court of Appeals held that the "strict regulation" of the casino industry evinced by the IGC's rules governing exclusion of certain patrons, coupled with the Legislature's decision to grant the IGC exclusive authority to set rules of riverboat casino games, specifically the game of blackjack, were dispositive evidence of the Legislature's intent to abrogate a casino's common law right of exclusion.

In Bailey , we recognized that regulation of an industry in isolation does not abrogate a private businesses common law right of exclusion. Moreover, even if the IGC has been granted exclusive authority over the game of blackjack and the exclusion of patrons, which we do not decide here, it has delegated this authority to the holders of riverboat permits under its rulemaking authority.

In the words of the IGC, rules promulgated by the Commission "do [] not preclude a casino licensee or operating agent from evicting a person from its casino gambling operation for any lawful reason.

Commission rules also delegate to the holders of riverboat permits exclusion rights "for reasons deemed necessary by the riverboat licensee.

We agree with Grand Victoria that such provisions at the very least do not evince an express intent by the Commission to alter common law exclusion rights.

Beyond this, the overwhelming weight of authority emanating from gaming jurisdictions rejects the notion that comprehensive regulation of the gaming industry, even where statutory or regulatory provisions directly address the exclusion of persons from such facilities, preempts a proprietor's common law right to arbitrarily exclude patrons.

Jockey Club , U. Thistledown Racing Club, Inc. Apache Greyhound Park, Inc. Ramsey , Md. Licata , 28 N. There is some authority to the contrary.

Resorts Int'l Hotel, Inc. Garabedian , R. However, for us to conclude, as appellants have, that the mere enactment of statutes which confer upon the racing commission the authority to exercise a right of exclusion has the effect of abrogating the authority of racetrack proprietors to exercise an identical common law right they possess is unwarranted.

Grand Victoria enjoyed the common law right to exclude Donovan. This does not mean that the comprehensive regulatory scheme enacted by the Legislature and implemented by the IGC did not abrogate any of the common law.

Kephart , N. In this case, Donovan argues that because the regulatory scheme does not prohibit card counting, the common law right to exclude is abrogated.

But while the common law duty on the part of a casino to exclude a compulsive gambler is incompatible with the regulatory scheme at issue in Kephart because the regulation imposes a duty instead on the gambler to register, there is nothing that makes the common law right to exclude incompatible, or even in conflict with, the regulatory scheme at issue in this case.

The regulation here dictates the rules of the game of blackjack but in no way conflicts with or limits a casino from excluding smokers or college students or provocative dressers — or card counters.

Donovan contends in the alternative that he has a legitimate claim of entitlement — a property interest in supplementing his income through gambling.

In part, the Court of Appeals imputed a protectable property interest to Donovan from the absence of a particularized IGC rule prohibiting the practice of card counting.

See Donovan , N. Grand Victoria responds that silence concerning the propriety of card counting "does not imply that licensees may not exercise their common law right to exclude card-counters.

If anything, regulatory silence indicates intent to leave familiar exclusion practices undisturbed.

We find Uston v. In Uston , a card counter named Ken Uston the same card counter who was the subject of the New Jersey litigation referenced in footnote 5 above and discussed below argued that since the State of Nevada had enacted measures that required the exclusion of a limited class of undesirable persons, of which Uston was not a member, it thereby undertook the affirmative duty to compel the admittance of all persons, such as Uston, who were not named on the list compiled by the Nevada Gaming Commission.

The court held that "[s]uch an argument strains logic. It is the judgment of this Court that NRS We agree with the reasoning of the federal district court in Nevada.

The mere fact that IGC regulations do not expressly compel the expulion of card counters from casino facilities does not confer upon a patron an affirmative right of access to a casino's facilities.

Donovan also claims the benefit of an IGC regulation concerning the interpretation of its rules. Donovan cites no support for the proposition that permitting card counting enhances integrity or public confidence in gaming operations or regulation.

We see no basis for changing the common law on these grounds. Resorts Int'l Hotel Inc. Uston had been excluded from a New Jersey casino for card counting.

Like Donovan, Uston argued that a casino's common law right arbitrarily to evict patrons from its premises had been preempted by exhaustive gaming regulations governing New Jersey's casino industry.

The Uston court held that the Casino Control Act gave New Jersey's gaming commission the exclusive authority to exclude patrons based upon their strategies for playing licensed casino games and that any common law right the casino may have had to exclude Uston for these reasons was abrogated by the Act and outweighed by Uston's right of access.

The statutory language supporting the court's holding provided that the commission "shall establish such minimum wagers and other limitations as may be necessary to assure the vitality of casino operations and fair odds to and maximum participation by casino patrons.

The court noted that the New Jersey Act went into great detail in defining the rules of blackjack, and only the commission had authority to alter these rules.

Following this line of reasoning, the court found that the casinos had changed the rules of the game by excluding patrons based upon their method of play or their level of success.

The court ultimately concluded that such exclusions contravened the Legislature's express intent for the enactment of New Jersey's Casino Control Act: Indiana courts have never recognized a public right of access to private property.

Tanner , U. And in contrast to the express intent for the enactment of New Jersey's Casino Control Act, our Legislature chose to legalize riverboat gambling "to benefit the people of Indiana by promoting tourism and assisting economic development," I.

Acknowledging this lack of congruence between the two states' gaming statutes, Donovan argues that Grand Victoria opened its premises to the general public for tourism purposes and the arbitrary exclusion of patrons neither promotes tourism nor economic development.

We are not persuaded. It seems to us just as likely — if not more so — that discouraging card counting enhances a casino's financial success and directly furthers the Legislature's express objective of promoting tourism and assisting economic development.

In point of fact, New Jersey has come to recognize that card counting can threaten economic development. Other considerations counsel against adopting the position Donovan advances.

In Brooks , the Seventh Circuit recognized that although it is "arguably unfair" to allow a place of amusement arbitrarily to exclude patrons, F.

What the proprietor of a race track does not want to have to do is prove or explain that his reason for exclusion is a just reason.

In the words of the Arizona Court of Appeals,. We are not persuaded that the common law rule of exclusion should be changed. The policy upon which it is based is still convincing.

The [casino] proprietor must be able to control admission to its facilities without risk of a lawsuit and the necessity of proving that every person excluded would actually engage in some unlawful activity.

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