Arkansas Supreme Court Upholds Electronic Games Gambling Law
The Arkansas Supreme Court affirmed summary judgment in Gallas v. Alexander, No. 06-956 (9/27/07).
The law at issue is codified at A.C.A. § 23-113-101, et seq. This law sets forth procedures for permitting gambling on electronic games of skill. Any city or county that already has horse racing or greyhound racing can hold a local election. Presently only Oaklawn Jockey Club in Hot Springs and Southland Racing Corporation in West Memphis have such legal operations in Arkansas. The racetrack itself chooses whether the election is submitted to the city or county, but the racetrack must pay all expenses associated with the election. The Arkansas Racing Commission (ARC) determines what games qualify as electronic games of skill.
Plaintiffs are residents of Garland County but not of the city of Hot Springs. They challenged the law on three main grounds: (1) delegation of legislative authority to the racetracks; (2) delegation of legislative authority to the ARC; and (3) the law had no rational basis. The trial court rejected these arguments and held the law is constitutional. The supreme court agreed and affirmed.
Delegation of Legislative Authority to the Racetracks
The court was persuaded by the statute that the city and county where the racetrack is located have similar interests. The citizens of the area will be well represented no matter if the election is held at the city or county level. Moreover, the racetrack must pay all costs of the election, no matter the results.
Delegation of Legislative Authority to the ARC
The court was satisfied that the law provides clear guidelines for the ARC to determine what games qualify as electronic games of skill. The ARC can fulfill its duty using these guidelines provided by the Legislature.
No Rational Basis
The court agreed that the law was put in place to protect Arkansas's economic and agribusiness activity, as well as communities with horse racing and greyhound racing. Racing facilities in other states have electronic gaming, which puts Arkansas businesses at a competitive disadvantage.
