Kraus v. City of Cleveland

96 N.E.2d 314, 89 Ohio App. 504, 58 Ohio Law. Abs. 360, 46 Ohio Op. 132, 1950 Ohio App. LEXIS 619
CourtOhio Court of Appeals
DecidedDecember 18, 1950
Docket22062
StatusPublished
Cited by7 cases

This text of 96 N.E.2d 314 (Kraus v. City of Cleveland) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kraus v. City of Cleveland, 96 N.E.2d 314, 89 Ohio App. 504, 58 Ohio Law. Abs. 360, 46 Ohio Op. 132, 1950 Ohio App. LEXIS 619 (Ohio Ct. App. 1950).

Opinion

*361 OPINION

By SKEEL, PJ.:

This appeal comes to this court on questions of law and fact from a judgment for the plaintiff entered by the common pleas court of Cuyahoga County.

The plaintiff’s amended petition alleges that he is a taxpayer of the City of Cleveland and brings this action on behalf of all taxpayers similarly situated and pursuant to §4314 GC and the applicable provisions of the Charter of the City of Cleveland, after the Law Director, upon due notice, refused in writing to bring such action.

The plaintiff alleges that the City Council, on or about the 9th day of February, 1944, passed an Ordinance known as No. 1316 A 43 which became Secs. 2925-11 to 22 of the Municipal Code of the City of Cleveland, commonly known as the “Bingo” Ordinance, the purpose of such Ordinance being to license the conduct of games of chance operated for charitable purposes.

The plaintiff further alleges that the Commissioner of Assessments and Licenses of the City, acting under the authority of the “Bingo” Ordinance has licensed about forty Bingo Parlors which are now operating within the City of Cleveland.

The petition then describes the game of “Bingo” or “Keno” and concludes with the allegations that such game, as authorized by the said Ordinance, consists solely of a price or consideration paid by a player for the privilege of the chance of winning a prize and that such game constitutes gambling through the operation of a lottery.

The petition further alleges that the Bingo parlors have an annual income in excess of $4,000,000.00 and that less than three percent of such amount is given for charitable purposes. That the licensing of Bingo games is contrary to the laws of the State and in violation of the Constitution of the State of Ohio and that the City is without legal authority to license and legalize gambling and lotteries. And further, that in so doing the Commissioner of Assessments and Licenses has been and is expending tax funds which have been approved and paid by the City Treasurer and unless enjoined such public expenditures will continue to be made in licensing and supervising Bingo Parlors.

The plaintiff then prays that the defendants be enjoined from issuing licenses and expending tax funds in carrying out the terms of said Bingo Ordinance and that the court declare said ordinance void and the licenses issued thereunder void and of no legal effect.

*362 The defendants filed a joint answer by which they admit all of the allegations of the plaintiff’s amended petition except those describing the game of Bingo and that such game constitutes a lottery, deny the number of licenses issued and the income received in operating such Bingo Parlors and that the ordinance or the licenses issued thereunder are void and of no effect or in violation of the Constitution of the State of Ohio.

The defendants then allege that the Bingo Ordinance was passed under the Home Rule provisions of the Constitution of Ohio and is simply a regulatory ordinance imposing necessary restrictions on those licensed to conduct Bingo games for charitable purposes and that said Ordinance is not in conflict with the laws or the Constitution of the State of Ohio.

The plaintiff’s reply denies all the affirmative allegations of the defendants’ answer.

The evidence, supplemented by the facts admitted by the pleadings, establishes that bingo is a lottery and that those who conduct such games are in fact conducting a lottery in that such licenses sell for a stipulated consideration the chance to win a prize. The evidence also shows that about forty Bingo Parlors have been licensed which licenses purport to authorize the holder to operate a scheme of chance and contain on the face thereof the charitable enterprise for whose benefit the games are to be played. The evidence of the Commissioner of Assessments and Licenses shows that in excess of $3,000,000.00 gross receipts were reported as taken in by the fprty licenses during the year 1948, of which less than three percent was given to charitable beneficiaries.

There is just one question presented and that is whether or not the City of Cleveland has legal authority to license the conducting of a lottery where some part of the income is set aside for a charitable purpose.

The Constitution of Ohio provides:

“Article 15, Section 6: Lotteries and sale of Lottery tickets for any purpose whatever shall be forever prohibited in this State.”

Prior to 1943 there was in force and effect §13064 GC which provided:

“Whoever establishes, opens, sets on foot, carries on, -permits, makes or acts as a backer or vendor, for, or on account *363 of lottery or scheme of chance, by whatever style or title denominated, etc., * * * shall be fined not less than $50.00, nor more than $500.00 and imprisoned not less than 10 days nor more than 6 months.”

In 1943 this section was amended to read as follows:

“Whoever, for his own profit, establishes, opens, sets on foot, carries on, permits, makes or acts as backer or vendor for, or on account of lottery or scheme of chance by whatever name, style or title denominated etc., * * * shall be fined not less than $50.00, nor more than $500.00, and imprisoned not less than 10 days, nor more than six months.”

The pertinent sections of the “Bingo” ordinance provide:

“Sec. 2925-11, Definitions. ‘Game of Chance’ for the purposes of this ordinance shall mean any game, other than policy, constituting a lottery, by whatever name, style or title denoted, participated in by two or more players for any prize, gift or award of thing of value, where a charge is made, or other consideration paid by any player for the right to participate in such game and the dominating factor in determining the result of such game is chance, notwithstanding that such result may be dependent to some extent upon the judgment, intelligence or adroitness of the player.
“ ‘Charitable purpose’ shall include any charitable, benevolent, philanthropic, religious or fraternal purpose.”

Sec. 2925-12 provides that no one shall conduct such games of chance until license is granted as provided by the ordinance. Sec. 2925-13 in part provides that no license to conduct games of chance shall be issued except for charitable purposes. Sec. 2925-15 provides the manner and form in which the application for a license to conduct a game of chance shall be made and the information to be contained in such application.

“Sec. 2925-17, Issuance of License. After such hearing and upon receipt of the application from the director of public safety with recommendations endorsed thereon approving the same, and following public hearing before the commissioner of assessments and licenses if satisfied that the applicant is of good character, and that the premises and conditions under which the licensee is to operate meet with the sanitary, building and fire regulations, shall issue *364

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Cite This Page — Counsel Stack

Bluebook (online)
96 N.E.2d 314, 89 Ohio App. 504, 58 Ohio Law. Abs. 360, 46 Ohio Op. 132, 1950 Ohio App. LEXIS 619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kraus-v-city-of-cleveland-ohioctapp-1950.