Level II - NM Training Book

8/20/19

EARLY GAME- CLASSIFICATION WARS

— Early on, federal regulators and prosecutors viewed the visual similarity between the electronically aided bingo games and traditional slot machines as blurring the line of game classification. — A number of cases were filed by the federal government based on the following theories: — Because Class II games look and act like slot machines(i.e., they’re faster-paced than traditional/manual bingo; require more investment; and involve a greater risk of loss), they are electronic facsimiles/Class III. — Congress intended Class II gaming to be less lucrative than Class III gaming. — There is no implied exemption to the Johnson Act with regard to Class II technological aids.

LACK OF JUDICIAL ENDORSEMENT

— In the early game-classification cases, the 1992 definitions of “electronic aid” and “electronic/electromechanical facsimile” proved unhelpful. — In fact, federal courts, including at least 3 Circuit Courts of Appeal, implicitly rejected the Commission’s definitions: — “ Boiled down to their essence, the regulations tell us little more than that a class II aid is something that is not a class III facsimile. ” Diamond Game Enterprises v. Reno , 230 F.3d 365, 369 (D.C. Cir. 2000). — “ The decision is a ‘ simple one that may be accomplished solely by examining the statute itself (that is, without looking to the Commission ’ s rules). ’” Cabazon Band of Mission Indians v. National Indian Gaming Commission , 14 F.3d 633 (D.C. Cir. 1994).

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