Ultra Telecom, Inc. v. State

701 S.E.2d 144, 288 Ga. 65, 2010 Fulton County D. Rep. 3194, 2010 Ga. LEXIS 641
CourtSupreme Court of Georgia
DecidedOctober 4, 2010
DocketS09G1946, S09G1948
StatusPublished
Cited by7 cases

This text of 701 S.E.2d 144 (Ultra Telecom, Inc. v. State) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ultra Telecom, Inc. v. State, 701 S.E.2d 144, 288 Ga. 65, 2010 Fulton County D. Rep. 3194, 2010 Ga. LEXIS 641 (Ga. 2010).

Opinions

HUNSTEIN, Chief Justice.

We granted certiorari in these cases to address whether the seven video game machines at issue are illegal gambling devices subject to condemnation by the State, as found by the Court of Appeals based on the interpretation it gave to the phrase “a single play” pertaining to the noncash redemption options set forth in OCGA § 16-12-35, State of Ga. v. Damani, 299 Ga. App. 112 (681 SE2d 635) (2009), or whether the game machines meet the definition in OCGA § 16-12-35 for coin operated games or devices designed and manufactured for bona fide amusement purposes only, as found by the trial court when it denied the State’s petition to condemn these particular machines. For the following reasons, we reverse the Court of Appeals.

1. The State of Georgia, by and through the District Attorney of Cobb County, brought civil condemnation actions against various game machines owned or leased by appellants claiming that they were illegal gambling devices in violation of OCGA § 16-12-20 et seq. By agreement of the parties, the trial court assessed the capabilities of eleven specific machines, as representatives of the whole, and, after making detailed findings of fact as to each machine, applied those facts to its legal construction of OCGA § 16-12-35. The trial court found, inter alia, that seven of the machines1 were not illegal gambling devices subject to condemnation but instead were bona fide coin operated amusement games. Pertinent to this appeal, the trial court rejected the State’s argument that these seven machines were illegal gambling devices because they violated the [66]*66noncash redemption option in OCGA § 16-12-35 by exceeding the statutory $5 cap placed on noncash merchandise, prizes, toys, gift certificates, or novelties “received ... for a single play.” Id. at (d) (2). The trial court held that a player “could play a Machine, win points, redeem said points earned in that game, and then play again” or the player could “play a Machine for several plays, allowing the points to accumulate as permitted in [OCGA § 16-12-35] (d) (2), and then redeem[ ] the points in the form of token[s] or tickets for non-cash merchandise not to exceed $5 for a single play.” Because each game machine “had a mechanism that determined the number of plays and provided the player with a certificate or voucher for noncash merchandise for $5 per play regardless of the number of points the player accumulated,” the trial court found the game machines at issue “per se” complied with the redemption provisions of OCGA § 16-12-35.

The Court of Appeals reversed the trial court as to these seven machines. The majority opinion was based on the holding that the trial court erred as a matter of law as to the legal interpretation it gave the phrase “a single play” in OCGA § 16-12-35. State of Ga. v. Damani, supra, 299 Ga. App. at 116 (1) (b). The majority opinion recognized that “[t]he term ‘a single play of the game or device’ is key to our analysis,” id., but noted that “[u]nfortunately, it is not defined in the statute. See OCGA § 16-12-20.” Id. It then construed the phrase to mean that a “‘single play of the game or device’ has occurred when a player cannot continue playing the game machine or device without providing additional consideration” (footnote omitted), id., and concluded, “[i]n short, if the player does not ‘cash out’ at this point for a prize not to exceed $5 in value, he or she may only use accumulated winnings to start the game anew.” Id. at 117. Further, correctly recognizing that the phrase “single play” in OCGA § 16-12-35 (d) (2) must be construed to mean the same as a “single play of the game or device” in OCGA § 16-12-35 (d) (1) (B), State of Ga. v. Damani, supra at 117 (1) (b), the Court of Appeals held that “OCGA § 16-12-35 (d) (2) does not allow for the accumulation of tokens, vouchers, or tickets in amounts exceeding $5 for a single play of the game or device” (emphasis supplied), id., a conclusion it found necessary to avoid rendering the $5 limitation on noncash merchandise in OCGA § 16-12-35 (d) (1) (B) “meaningless.” State of Ga. v. Damani, supra at 117 (1) (b).

The Court of Appeals rendered its decision in June 2009 and we granted certiorari in January 2010. While this appeal was pending, the Legislature amended OCGA § 48-17-1, the definitional statute for the revenue chapter governing the taxation of bona fide coin operated amusement machines. That amendment, which was signed [67]*67by the Governor on May 26, 2010 and became effective July 1, 2010, contains the following definition:

(7.1) “Single play” or “one play” means the completion of a sequence of a game, or replay of a game, where the player receives a score and from the score the player can secure free replays, merchandise, points, tokens, vouchers, tickets, or other evidence of winnings as set forth in subsection (c) or (d) of Code Section 16-12-35. A player may, but is not required to, exchange a score for rewards permitted by subparagraphs (A), (B), (C), and (D) of paragraph (d) (1) of Code Section 16-12-35 after each play.

Ga. L. 2010, p. 470/SB 454 § 1. With this amendment to OCGA § 48-17-1, which specifically defines the language in OCGA § 16-12-35 at issue in these appeals, the Legislature clarified its intent as to the meaning of “a single play” both as it pertains to the statutory $5 cap placed on rewards of noncash merchandise, prizes, toys, gift certificates, or novelties in OCGA § 16-12-35 (d) (1) (B) and as to that term’s usage in the noncash redemption provision in OCGA § 16-12-35 (d) (2). State of Ga. v. Damani, supra, 299 Ga. App. at 117 (1) (b) (OCGA § 16-12-35

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Patel v. State
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State v. DAMANI
708 S.E.2d 13 (Court of Appeals of Georgia, 2011)
Ultra Telecom, Inc. v. State
701 S.E.2d 144 (Supreme Court of Georgia, 2010)

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Bluebook (online)
701 S.E.2d 144, 288 Ga. 65, 2010 Fulton County D. Rep. 3194, 2010 Ga. LEXIS 641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultra-telecom-inc-v-state-ga-2010.