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Thursday, April 26, 2007
Courts - "The Lottery Giveth and The Lottery Taketh Away"
Decision of the Day had a summary yesterday of a very interesting 8th Circuit decision involving an Iowa law, in Hawkeye Commodity Productions, Inc. v. Vilsack, 06-2406 (8th Cir., Apr. 24, 2007)>. From the summary:
Here’s an interesting constitutional challenge from the Eighth Circuit involving Iowa’s decision to cancel a popular new lottery game. To reverse a pattern of budget shortfalls in 2000 and 2001, Iowa turned to “TouchPlay,” a machine that dispensed lottery tickets with all the bells and whistles of a slot machine. After TouchPlay’s successful 2003 launch, plaintiff Hawkeye Commodity Promotions responded to the lure of flashing dollar signs by investing almost $7 million to put TouchPlay machines in stores all over Iowa.But Hawkeye’s gamble failed in a big way. Just as Hawkeye was ramping up its operations, the Iowa legislature was debating the evils of gambling. In 2006, Iowa decided to cancel the all-too-successful TouchPlay program. Hawkeye sued, arguing that the decision violated its rights under the Contracts, Equal Protection, Takings, and Due Process clauses of the Constitution, but the district court rejected its claims. On appeal, the Eighth Circuit affirms, explaining that lottery programs are always subject to revocation, so investors should beware.
Posted by Marcia Oddi on April 26, 2007 06:08 PM
Posted to Courts in general