State Ex Rel. Draper v. Lynch

1943 OK 215, 137 P.2d 949, 192 Okla. 497, 1943 Okla. LEXIS 217
CourtSupreme Court of Oklahoma
DecidedMay 25, 1943
DocketNo. 30526.
StatusPublished
Cited by16 cases

This text of 1943 OK 215 (State Ex Rel. Draper v. Lynch) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Draper v. Lynch, 1943 OK 215, 137 P.2d 949, 192 Okla. 497, 1943 Okla. LEXIS 217 (Okla. 1943).

Opinions

CORN, C. J.

This action was brought by the state, on relation of the county attorney of Johnston county, against the defendant as the operator and proprietor of two theatres in Tishomingo, Okla., to restrain and perpetually enjoin defendant from conducting what is known as “policy night” or “box office insurance,” on the ground that it is a lottery and within the prohibition of our statute, the same being 21 O. S. 1941 § 1051.

The material paragraphs of the petition alleged, in substance:

“3. To increase the paid attendance and revenues of the two theatres defendant was operating ‘policy night’ by registering anyone who applied, on form applications, for ‘box office insurance,’ the applications being placed in sealed envelopes in a numerical file.
“4. Without any charge for registration each applicant was issued a ‘box office insurance’ policy, of the face value of $20.
“5. On designated nights judges were selected from the audience and the audience supplied them with numerals, which formed the number of the application bearing the name of the ‘policy1 to be redeemed. This selection was announced inside and outside the theatres, and the person whose name was announced could appear within a reasonable time, surrender his policy and receive $20. If not claimed this amount was added to the next policy as ‘accrued value.’
“6. As a result of the operation of this scheme, and in order to more readily redeem their policies, persons attended the theatres and paid admission who otherwise would not have done so, thereby increasing attendance and revenues as intended by defendant.
“7. By purchasing admission tickets such persons not only paid consideration for their own chance of winning, but also paid consideration for those accorded a chance to win without being present inside the theatres.
“8. That consideration was paid by each person accorded a chance to win without purchasing a ticket, by reason of the legal detriment sustained in being required to register and appear within a required time after such person’s name was called, in order to ‘redeem’ his policy.”

Thereafter plaintiff alleged this scheme was a lottery within the prohibition of 21 O. S. 1941 § 1051; that same was unlawful and a public nuisance within the prohibition of the succeeding sections, and asked a perpetual injunction against the scheme.

Defendant’s answer admitted the allegations of paragraphs 1, 2, 3, and 4 of the petition, but denied the allegations of paragraphs 6, 7, 8, 9, and 10. The substance of paragraph 5 was admitted, except as to the method of selection and the time allowed to appear and claim the prize.

Further answering, and as an affirmative defense, it was alleged that: no *499 consideration was paid for the policies but that they were issued without charge; no part of the admission price constituted a consideration for the policies; no part of such admission price constituted valuable consideration for policies held by persons not purchasing tickets; there was no agreement that legal detriment should exist in the requirement that a policyholder should appear and redeem his policy within the time given, so that this would constitute consideration on the part of those who held policies but did not purchase tickets; that the scheme did not constitute a lottery within the meaning and prohibition of the statute.

The allegations of paragraph 3 of the amended petition were that “policy night” as conducted by defendant was intended to, and did, result in increased attendance and revenues for defendant. This could only mean that persons attended the theatres who otherwise would not have attended, in order that they might be able to redeem their policies in the event their name was called.

Paragraph 6 expressly alleged that many applicants paid admission who otherwise would not have done so, thereby increasing attendance and revenues. These allegations of fact were borne out by the testimony of witnesses, two of whom testified, in effect, that they would not have attended except for the privilege of taking part in the drawing.

After hearing such testimony the trial judge stated:

“It seems to me you could agree on the facts here. The witnesses are all testifying to the same thing. It is natural that the attendance is larger when money is given away, it is purely a legal question.”

At the close of the evidence the court stated he inclined to a liberal construction of the statute; that he could not see where any consideration was paid for the chance of receiving the prize, and thereupon overruled plaintiff’s motion for judgment, and entered judgment for defendant.

The defendant does not dispute that two of the three elements of a lottery are present in this scheme, viz., “prize” and “chance.” But defendant contends that no element of “consideration” is present, since under the scheme anyone could register and win the prize without having to purchase an admission ticket.

Lotteries have been known, in one form or another, from Biblical days to the present time. Innumerable definitions have been given of them, but in all of these it is to be noted that there is little real difference, other than in the mode of expression. Webster’s International Dictionary (2d Ed.) defines a lottery as being:

“A scheme for the distribution of prizes by lot or chance, especially a scheme by which one or more prizes are distributed by chance among persons who have paid or promised a consideration for a chance to win them. ...”

This definition was approved in Horner v. United States, 147 U. S. 449, 27 L. Ed. 237. See, also, 34 Am. Jur. 646.

The English definition of a lottery, based upon judicial decisions, states that a lottery is any scheme, device, or plan for distributing prizes by lot or chance. While the elements of a lottery are not enumerated, the English concept of a lottery includes “consideration” and follows the same formula that is applied by the American courts, declaring that a lottery is any gambling scheme which contains elements of (1) prize, (2) chance, (3) consideration. In the book, Flexible Participation Lotteries, Williams (1938) §§ 192, 194, 195, lotteries are shown to be divided generally into three distinct classes, or types. These are: (1) Closed Participation— this type being any lottery in which the attendant restrictions of purchase of goods, tickets, etc., are a condition precedent to participation. These are uniformly declared to be lotteries. (2) Open Participation — in this class none of the participants are required to do anything in order to participate, and no offer of any kind is extended as an inducement for participation. (3) Flex *500 ible Participation — this type professes to be free, but is closely related to the closed participation type. The essential difference lies in the fact that this scheme is relaxed sufficiently to include some who are, theoretically, nonpaying participants.

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Bluebook (online)
1943 OK 215, 137 P.2d 949, 192 Okla. 497, 1943 Okla. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-draper-v-lynch-okla-1943.