Delaware Steeplechase & Race Ass'n v. Wise

27 A.2d 357, 41 Del. 587, 2 Terry 587, 1942 Del. LEXIS 20
Supreme Court of Delaware·Decided July 13, 1942·No. No. 2·Published·Cited by 14 cases

Opinion

Harrington, Chancellor:

This case involves the construction of the Delaware Racing Statute.

Section 17 of Article 2 of the Constitution of the State originally provided:

“The sale of lottery tickets, pool selling and all other forms of gambling are prohibited in this State. The General Assembly shall enforce this Section by appropriate legislation.”

By an amendment, which became effective in 1935, (Chapt. 2, Vol. 38, Laws of Delaware; Chapt. 1, Vol. 40, Laws of Delaware), the same section now provides:

“The sale of Lottery Tickets, pool selling and all other forms of gambling are prohibited in this State; except wagering or betting on races at race tracks by the use of pari-mutuel machines or totalizators in connection therewith.
“The General Assembly shall enforce this Section by appropriate legislation.”

Under that Section “wagering or betting on races at race tracks by the use of pari-mutuel machines or totalizators in connection therewith” is, therefore, expressly excepted from the general constitutional prohibition against [592] gambling, and may be provided for by appropriate legislative action.

Consequently, the General Assembly enacted Chapter 62, Volume 38, Laws of Delaware, usually known as the Racing Statute. That Act, as amended February 6th, 1935, by Chapter 112, Volume 40, Laws of Delaware, is incorporated in Chapter 163 of the Revised Code of 1935. It provides for the regulation, control and licensing of horse racing in the State of Delaware, for the creation of a Racing Commission, and prescribes its powers and duties. Section 5510 of the Revised Code, now Section 15 of the Racing Act, as amended by Chapter 112, Volume 40, Laws of Delaware, is the important section. It provides:

1. “Within the enclosure of any horse race meeting licensed and conducted under this Chapter, but not elsewhere, the wagering or betting on horse races by the use of pari mutuel machines or totalizators is hereby authorized and permitted.”
2. “The Delaware Racing Commission shall have power in its discretion, to grant a license or licenses to any person, firm or corporation, to make, conduct and sell pools by the use of pari mutuel machines or totalizators, for the purpose of receiving wagers or bets on horse races within the enclosure of any race meeting licensed and conducted under this Chapter, but not otherwise, under such regulations as the Commission shall prescribe.”
3. “The Commission shall have power to prescribe regulations governing the granting of applications for licenses, the granting of licenses, and the conditions under which any licensee may conduct, sell or make any such pool.”
4. “The Delaware Racing Commission may authorize [593] commissions on pari-mutuel or totalizator pools to the person, firm, or corporation operating the race meet, provided, however, that in no event and at no track licensed under this Chapter shall said commissions, when added to the amount payable to the Delaware Racing Commission from such pools, for the use of the State of Delaware, exceed six per cent of the total contributions to all pari mutuel or totalizator pools conducted or made upon any track, plus the odd cents of all redistributions to be made on all pari mutuel or totalizator pool contributions exceeding a sum equal to the next lowest multiple of five”.

The real controversy relates to the precise meaning of that part of the statute which authorizes the Racing Commission to permit the deduction of commissions “on pari mutuel or totalizator pools”, not exceeding 6% “of the total contributions to all pari mutuel or totalizator pools conducted or made upon any track, plus the odd cents of all redistributions to be made on all pari mutuel or totalizator pool contributions exceeding a sum equal to the next lowest multiple of five”.

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Delaware Steeplechase & Race Ass'n v. Wise, 27 A.2d 357, 41 Del. 587, 2 Terry 587, 1942 Del. LEXIS 20 (Del. 1942).

27 A.2d 357 (Delaware Steeplechase & Race Ass'n v. Wise) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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