H & Z Vending v. Iowa Department of Inspections & Appeals

593 N.W.2d 168, 1999 Iowa App. LEXIS 9, 1999 WL 311194
CourtCourt of Appeals of Iowa
DecidedFebruary 24, 1999
Docket97-1660
StatusPublished
Cited by3 cases

This text of 593 N.W.2d 168 (H & Z Vending v. Iowa Department of Inspections & Appeals) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H & Z Vending v. Iowa Department of Inspections & Appeals, 593 N.W.2d 168, 1999 Iowa App. LEXIS 9, 1999 WL 311194 (iowactapp 1999).

Opinion

PETERSON, S.J.

The petitioner H & Z Vending appeals from the district court ruling on judicial review affirming the respondent’s, Iowa Department of Inspections and Appeals, declaratory ruling that petitioner’s video poker game “fraternal poker” is not a lawful game of chance under Iowa Code section 99B.7 (1995).

They contend the Iowa Department of Inspections and Appeals’ ruling was contrary to law and the department abused its discretion in refusing to find that their game “fraternal poker” is a lawful game of chance, and that the district court erred in affirming their decision.

Background and Proceedings

H & Z Vending is a business located in Omaha, Nebraska. They sell and distribute amusement devices and games of chance. They have developed a game called “fraternal poker.” This is an electronic and mechanical game which simulates a five card poker game.

The game utilizes a color monitor through which images are displayed to the player. It is activated when a player deposits a one dollar bill of U.S. currency into the machine. The price to play this game will not exceed this amount.

*170 The color monitor game lights upon activation and displays a game typically known as five card draw poker. The machine deals the top five cards from a fifty-two card deck that has been shuffled electronically. The player has the oppoi'tunity of discarding up to five cards. Depending upon the number of cards discarded by the player, the machine then electronically deals a sufficient number of additional cards to make up a second and final hand of five cards. It is this hand that will determine if the player has a winning poker hand and eligibility to be awarded tickets for redemption for merchandise prizes.

The company plans to sell or lease the machines to licensed qualified organizations on a flat fee or sell the machines to organizations which are or will be licensed under Iowa Code section 99B.7 (1995). They do not claim the game is in compliance with Iowa Code section 99B.10 (1995).

H & Z Vending filed a petition requesting a declaratory ruling before the Iowa Department of Inspections and Appeals. They requested that the department find that the game “fraternal poker” is a lawful game of chance that could be lawfully utilized by licensed organizations pursuant to section 99B.7 and that its use and activity does not contradict Iowa Code section 725.9.

The department held that the game of “fraternal poker” was not a game of chance under Iowa Code sections 99B.1(14) and 99B.7 (1995) as it met the definition of a slot machine which is specifically excluded from the definition of a game of chance under Iowa Code section 99B.1(14). Consequently they found it was an illegal gambling device under Iowa Code section 725.9 (1995).

H & Z Vending then filed a petition for judicial review of the department’s action. They contend that the department ruling was untimely and in excess of statutory authority, in violation of the agency’s rales and made on unlawful procedure, and the result of unreasonable and capricious agency action characterized by an abuse of discretion and erroneous application of Iowa law. The district court held that the department did not err in finding that “fraternal poker” was a slot machine and its decision was not contrary to law and was not arbitrary or an abuse of discretion.

Standard of Review

Under the Iowa Administrative Procedure Act, when this court reviews the district court’s decision on the validity of an agency action, we ask only whether the district court has correctly applied the law. UNI-Faculty v. Iowa Public Employment Relations Bd., 545 N.W.2d 274, 277 (Iowa 1996). The district court is itself acting in an appellate capacity to correct errors of law by the agency. Gaffney v. Department of Employment Serv., 540 N.W.2d 430, 433 (Iowa 1995). In our review of such actions by the district court, we merely apply the standards of section 17A.19(8) to the agency action to determine whether our conclusions are the same as those of the district court. Norland v. Iowa Dep’t of Job Serv., 412 N.W.2d 904, 908 (Iowa 1987). When the conclusions are the same we must affirm. Id.

Because law issues are determined by the judiciary alone we owe an agency only limited deference in matters of law, including statutory interpretation. Suluki v. Employment Appeal Bd., 503 N.W.2d 402, 404 (Iowa 1993). We are not free to interfere with the agency’s findings of fact where there is conflict of evidence or , disagreement as to the inferences to the evidence whether disputed or not. UNI-United Faculty, 545 N.W.2d at 277. We must ask not whether the evidence might support a different finding but whether the evidence supports the findings actually made. Id. Hence, an agency’s findings are binding on appeal unless a contrary result is demanded as a matter of law. Id.

Analysis

Iowa Code chapter 725 (1995) prohibits gambling and professional gambling devices. Iowa Code section 725.15 (1995) however, contains certain exceptions. The prohibition does not apply to a game, ticket, or device when lawfully possessed, used, conducted, or participated in pursuant to chapter 99B, 99E, or 99F. Iowa Code § 725.15 (1995). Iowa Code section 99B.7 allows games of skill, games of chance, and raffles to be conducted by qualified organizations. It is H & Z *171 Vending’s contention that the game of “fraternal poker” qualifies under this section as a game of chance.

A game of chance is defined in Iowa Code section 99B.1(14) (1995) as “a game” whereby the result is determined by chance and the player in order to win aligns objects or balls in prescribed pattern or order or makes certain color patterns appear and specifically includes but is not limited to the game defined as bingo. Games of chance do not include a slot machine.

The term “slot machine” is not defined in the Code. However, the Iowa Administrative Code in section 481-104.1 (10A, 99B) defines “slot machine” as:

a mechanical, electronic, or video gambling device into which a player deposits coins, tokens, or currency and from which certain credits, tickets, tokens, or coins are paid out when a particular, random configuration of symbols appears on the reels, simulated reels, or screen of this device. The slot machine may have a lever, buttons or other means to activate or stop the play.

The Iowa Supreme Court has defined slot machine as “any coin-operated amusement device designed to facilitate gambling.” In re Property Seized from Brown, 501 N.W.2d 472, 473 (Iowa 1993).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Untitled Texas Attorney General Opinion
Texas Attorney General Reports, 2002
Opinion No.
Texas Attorney General Reports, 2002
Opinion of the Justices
795 So. 2d 630 (Supreme Court of Alabama, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
593 N.W.2d 168, 1999 Iowa App. LEXIS 9, 1999 WL 311194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/h-z-vending-v-iowa-department-of-inspections-appeals-iowactapp-1999.