Video Consultants of Nebraska, Inc. v. Douglas

367 N.W.2d 697, 219 Neb. 868, 1985 Neb. LEXIS 1023
CourtNebraska Supreme Court
DecidedMay 10, 1985
Docket84-092
StatusPublished
Cited by7 cases

This text of 367 N.W.2d 697 (Video Consultants of Nebraska, Inc. v. Douglas) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Video Consultants of Nebraska, Inc. v. Douglas, 367 N.W.2d 697, 219 Neb. 868, 1985 Neb. LEXIS 1023 (Neb. 1985).

Opinion

Per Curiam.

Raised in this case is the question whether an electronic gaming machine, such as a video computer, is a form of lottery permitted under statutes enacted by the Nebraska Legislature in *869 1983 relative to gambling. At the outset we note that the Legislature, in 1984, amended the statute defining “lottery” and specified devices which do not qualify as a “lottery.” The 1984 amendment states: “Lottery shall not include any gambling scheme which uses any mechanical gaming device, computer gaming device, electronic gaming device, or video gaming device which has the capability of awarding monetary prizes, free games redeemable for monetary prizes, or tickets or stubs redeemable for monetary prizes.” Neb. Rev. Stat. § 28-1101(6) (Cum. Supp. 1984).

Nevertheless, because activities have likely occurred involving the 1983 statutes, and liabilities, civil or criminal, may be unresolved due to the uncertainty concerning the legality of activities under the questioned statutes, we are compelled to dispose of the question raised.

Video Consultants of Nebraska, Inc., and IGT Nebraska, Inc., supply video lottery equipment, consultation, and services to nonprofit organizations and political subdivisions authorized to operate lotteries. See Neb. Rev. Stat. §§ 28-1115 to 28-1116.01 (Supp. 1983). The city of Bellevue (Bellevue) is a municipal corporation whose electors have authorized that city to operate a lottery. See § 28-1116. Defendants in this case are the Attorney General of the State of Nebraska and the Douglas County attorney (hereinafter called the “State”), who are charged with enforcing the Nebraska laws prohibiting gambling.

Video Consultants and IGT entered contracts with Bellevue to provide video lottery equipment, consultation, and services in conducting a lottery. In a November 7, 1983, letter to the mayor of Bellevue, the Attorney General stated that the video lottery conducted by Bellevue violated Nebraska’s gambling laws, and directed Bellevue to cease operation of its video lottery. According to the Attorney General’s letter, failure to remove the video lottery would result in proceedings commenced by the State for an injunction prohibiting Bellevue’s further operation of a video lottery.

Video Consultants filed a petition in the district court for Douglas County, seeking a permanent injunction to prevent the State from interfering with operation of video lotteries in *870 Bellevue and asking the district court to declare video lotteries permissible under Nebraska law. IGT and Bellevue filed petitions to intervene and requested relief substantially similar to that requested by Video Consultants.

For the purpose of trial the State stipulated with Video Consultants and IGT regarding a video lottery.

Video Consultants and the State stipulated:

The video lottery equipment . . . consists of computer-based video machines which are activated by a participant inserting one or more coins. The machine is equipped with an eighty-number pad from which the participant may select from one to ten numbers. Upon selection of his numbers, the participant activates the machine which selects, purely at random, twenty (20) numbers from the total base of eighty (80) numbers. The participant’s winnings, if any, are determined by matching the numbers selected by the participant with the random numbers selected by the machine.
. . . Each machine is equipped with a computer-driven ticket printer which has the capability of printing whatever information is desired. The machine is capable of printing a ticket at the start of each play which reflects the numbers selected by the participant, and another ticket at the conclusion of each play which reflects the winning numbers selected by the machine at random together with the amount which the participant has won, if any. However, for convenience and in order to eliminate the use of excessive paper, the machines, as presently provided by Plaintiff to Sponsors, are programmed to allow a participant to accumulate credits on the machine and, upon activation by the participant at the termination of the participant’s use of the machine, to print a single ticket which states the cumulative amount which the participant has won. Each ticket issued in the lottery conducted by Sponsors has the name of the Sponsor clearly printed on each ticket, each ticket bears a number, which numbers are in sequence and each Sponsor keeps a record of all locations where its tickets are issued. Tickets are redeemable for the amount of the prizes awarded by the *871 Sponsor, Plaintiff or authorized agents. As presently provided by Plaintiff to Sponsors, tickets issued by the machines reflect the amount of winnings and are required to be presented in order for the participant to receive a prize, but the tickets do not have a functional role in determining whether a participant wins or the amount of the winnings.

IGT and the State stipulated:

The video lottery equipment . . . consists of computer-based video machines described as follows:
(a) Each location consists of one or more lottery game terminals connected to an agent terminal. .. . Individuals play the game terminals and can accumulate their winnings on the video meter. If the player leaves without having accumulated any winnings, no losing ticket is printed. However, if the play [sic] accumulates winnings and desires to “cash out,” he presses the button on his game terminal labeled “collect winnings.” This causes his lottery game terminal to inform the agent terminal which, in turn, causes a winning ticket to be printed by the game terminal. On this ticket is printed a random validation code assigned by the agent terminal, and a copy of the ticket is simultaneously printed on the agent terminal. The player then takes his ticket to the agent for validation and payment.
(b) Daily a central site system dials up each agent terminal to obtain a summary data for that day’s play at that location. This data is stored for report distribution and subsequent processing.
(c) The IGT video lottery game uses color graphics, animation, on-screen instructions and sound effects to instruct and inform players. The audio-visual components instruct and inform players. The audio-visual components add greatly to the realism, player involvement and enjoyment of video lottery games____Players will interact with the game through use of a light pen and push buttons.
(d) The game is activated by the insertion of a coin (presently .25(p) but the amount may be changed by owner option.
*872 . (e) The game’s random program does not involve any player skill, and will, on average, return approximately 85 percent of the dollar amount played in the form of various size prizes. . . .

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Cite This Page — Counsel Stack

Bluebook (online)
367 N.W.2d 697, 219 Neb. 868, 1985 Neb. LEXIS 1023, Counsel Stack Legal Research, https://law.counselstack.com/opinion/video-consultants-of-nebraska-inc-v-douglas-neb-1985.