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California Tribe's Santa Ysabel Casino Files for Bankruptcy - WSJ
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The Ninth Circuit affirmed the district court's grant of summary judgment to California and the United States in an action seeking injunctive relief prohibiting the Iipay Nation of Santa Ysabel from continuing to operate Desert Rose Casino.
The panel held that the Indian Gaming Regulatory Act IGRA protects gaming activity conducted https://tayorindustry.com/casino/immokalee-casino-facebook.html Indian lands.
However, a patron's act of placing a bet or wager on a game of Desert Rose Bingo DRB while located in California constitutes gaming activity that is not located on Indian lands.
Therefore, it violates the Unlawful Internet Gambling Enforcement Act and was not protected by the IGRA.
pa casino mohegan sun allentown act of placing bets or wagers over the internet while located in a jurisdiction where those bets or wagers was illegal makes Iipay's decision to accept financial payments associated with those bets or wagers a casino santa ysabel of the UIGEA.
Desert Rose Casino is exclusively a server-based bingo game that allows patrons to play computerized bingo over the internet.
Iipay Nation is a federally recognized Indian tribe with tribal lands located in San Diego County, California.
IIPAY NATION OF SANTA YSABEL, AKA Santa Ysabel Band of Diegueno Mission Indians, AKA Santa Ysabel Band of Diegueno Mission Indians of the Santa Ysabel Reservation; Casino santa ysabel YSABEL INTERACTIVE, a tribal economic development entity; SANTA YSABEL GAMING COMMISSION; SANTA YSABEL TRIBAL DEVELOPMENT CORPORATION; ANTHONY BUCARO; DAVID CHELETTE; MICHELLE MAXCY; VIRGIL PEREZ; BRANDIE TAYLOR; DAVID VIALPANDO, Defendants-Appellants.
IIPAY NATION OF SANTA YSABEL Filed August 2, 2018 Before: M.
Margaret McKeown, Julio M.
Desert Rose Casino is exclusively a server-based bingo game that allows patrons to play computerized bingo over the internet.
Iipay Casino santa ysabel is a federally recognized Indian tribe with tribal lands located in San See more County, California.
Fuentes, United States Circuit Judge for the U.
Court of Appeals for the Third Circuit, sitting by designation.
It has been prepared by court staff for the convenience of the reader.
IIPAY NATION OF SANTA YSABEL 3 bet or wager on a game of Desert Rose Casino while located in California, violated the UIGEA, and was not protected by the Indian Gaming Regulatory Act.
Crowell arguedCrowell Law Office-Tribal Advocacy Group, Sedona, Arizona; Little Fawn Boland, Ceiba Legal LLP, Mill Valley, California; Kevin C.
Torngren, Deputy Attorney General; Sarah J.
Drake, Senior Assistant Attorney General; Xavier Becerra, Attorney General; Office of the Attorney General, Sacramento, California; for Plaintiffs-Appellees.
IIPAY NATION OF SANTA YSABEL OPINION BEA, Circuit Judge: This case presents an issue of first impression: Does the Indian Gaming Regulatory Act, 25 U.
§ 2701, et seq.
Because we conclude that the Unlawful Internet Gambling Enforcement Act, 31 U.
§ 5361, et seq.
Iipay operated a traditional, brick-and-mortar casino on its tribal lands, but the casino failed and Iipay no longer conducts traditional gambling activity at the casino.
DRB is a serverbased bingo game that allows patrons to play computerized bingo over the internet.
Like traditional bingo, participants in DRB purchase cards labeled with a grid of numbers.
Instead, Iipay offered DRB to all California residents over 18 years of age exclusively through the internet.
The patron must then register, create an account, and fund the account either via a credit card or an electronic funds transfer.
The Requested tab shows the information from the Request Form—denomination of game, number of games, number of cards per game, and playback theme.
Once the number of patrons participating in the game reaches the pre-determined minimum number of participants set by DRB, the timer begins to count down.
IIPAY NATION OF SANTA YSABEL 7 bingo card, by the proxy.
Instead, the proxy is a passive observer and the DRB software automatically conducts all aspects of gameplay, from drawing the numbers to daubing the cards.
Under the completed tab, the patron can choose to view a video replay of the completed bingo game, which is presented in the selected graphical theme e.
The replay video shows the bingo card the patron purchased and a video recreation of the numbers being drawn and daubed.
At the end of the video, the patron is informed whether and how much please click for source patron won.
Iipay launched DRB on November 3, 2014.
On December 12, 2014, the district court issued a temporary restraining order prohibiting Iipay from continuing to operate DRB during the pendency of this litigation.
DRB has remained dormant ever since.
After discovery, the State of California and the United States filed separate motions for summary judgment.
The State of California sought summary judgment on two grounds.
IIPAY NATION OF SANTA YSABEL and Iipay regarding Class III gaming.
§ 5361, et seq.
§ 2701, et seq.
The district court ruled that DRB violated the UIGEA and entered a permanent injunction prohibiting Iipay from operating DRB.
Statutory interpretation presents a question of law, which we also review de novo.
As a result, that issue is not before us on appeal.
IIPAY NATION OF SANTA YSABEL 9 III This case presents an issue of first impression regarding the interrelation between IGRA and the UIGEA.
No other circuit has opined on whether an Indian tribe can offer online gaming to patrons located off Indian lands in jurisdictions where such gambling is illegal.
The issue hinges on the interpretation of the key provisions of IGRA and the UIEGA.
Thus, to analyze this issue, it is helpful to review the statutory framework of IGRA and the UIEGA.
The Statutory Framework IGRA was passed to provide a regime for regulating gaming on Indian lands.
§ 2710 a 2.
As discussed above, DRB like other forms of bingo, generally is a Class II game.
See discussion supra click at this page 8 n.
But the statute nowhere referenced the internet, or other networking capabilities that reach beyond Indian lands.
click the following article NATION OF SANTA YSABEL The UIGEA was passed to regulate online gambling.
Unlike IGRA or other gambling regulations, the UIGEA does not make gambling legal or illegal directly.
§ 5362 10 A emphasis added.
Thus, the UIGEA does not prohibit otherwise legal gambling.
IIPAY NATION OF SANTA YSABEL 11 United States, so long as the bet was legal in the jurisdiction hosting the servers for a game Las Vegas or Atlantic City, for instance, in the case of online poker.
In effect, click UIGEA prevents using the internet to circumvent existing state and federal gambling laws, but it does not create any additional substantive prohibitions.
This is likely due to the fact that most IGRA cases, including Michigan v.
Bay Mills Indian Community.
§ 2710 d 1.
§ 2710 a 2.
Bay Mills Indian Community.
The tribe argued that the lottery was protected under IGRA.
We reversed the district court, but did so without reaching the merits of the IGRA argument.
Specifically, Michigan argued that although the casino was located off of Indian lands, the tribe licensed the casino and completed administrative functions from its headquarters on its tribal lands.
The district court granted a preliminary injunction to Michigan, the tribe appealed, and the Sixth Circuit vacated the injunction.
Iipay does not contest these findings on appeal.
Two key conclusions can be drawn from these uncontested findings.
Iipay has admitted that patrons initiate bets or wagers within the meaning of the UIGEA while located in California, where those bets are illegal.
Iipay provides no basis to depart from this common sense, straightforward analysis.
See discussion, infra at 14—17.
See Bay Mills, 134 S.
Iipay argues strenuously that this analysis is flawed because any determination regarding the legality of DRB 12 Iipay argues that the location of a bet or wager should be determined under contract principles and that a contract including a wager is formed in the place of acceptance.
IIPAY NATION OF SANTA YSABEL must be made exclusively through examining IGRA, without reference to the UIGEA.
First, absent a direct conflict, courts should give effect to coexisting federal statutes.
Here, there is no direct conflict between IGRA and the UIGEA and, thus, we give effect to the provisions of both statutes.
Second, although Iipay is correct that the UIGEA does not alter IGRA, that does not mean that the UIGEA did not outlaw certain financial transactions associated with gaming on Indian lands facilitated by the internet, a topic on which IGRA is silent.
For instance, because casino genting manchester UIGEA specifies that it does not alter either federal or state laws regarding gambling, a state like Nevada could theoretically make the same argument advanced by Iipay to justify accepting wagers over the internet made by residents of other states.
Effectively, Nevada could argue that accepting wagers in its jurisdiction was legal before the UIGEA and, thus, must be legal after its passage as well.
Given the realities of the internet, this interpretation would render the UIGEA all but meaningless.
Thus, it can be true that the UIGEA did not alter IGRA, and it can also be true that DRB is subject to and violates the UIGEA.
IIPAY NATION OF SANTA YSABEL payments associated with those bets or wagers a violation of the UIGEA.
Patrons' act of placing a bet or wager on a game while located in California constitutes gaming activity that is not located on Indian lands, violates the Unlawful Internet Gambling Enforcement Act, and was not protected by the Indian Gaming Regulatory Act.
Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site.
Justia makes no guarantees or warranties that the annotations are accurate or reflect the current state of law, and no annotation is intended to be, nor should it be construed as, legal advice.
Contacting Justia or any attorney through this site, via web form, email, or otherwise, does not create an attorney-client relationship.
Patrons' act of placing a bet or wager on a game while located in California constitutes gaming acti.

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The Ninth Circuit affirmed the district court's grant of summary judgment to California and the United States in an action seeking injunctive relief prohibiting the Iipay Nation of Santa Ysabel from continuing to operate Desert Rose Casino.
The panel held that the Indian Gaming Regulatory Act IGRA protects gaming activity conducted on Indian lands.
However, a patron's act of placing a bet or wager on a game of Desert Rose Bingo DRB while located in California constitutes gaming activity that is not located on Indian lands.
Therefore, it violates the Unlawful Internet Gambling Enforcement Act and was not protected by the IGRA.
The panel further held that, continue reading if Iipay was correct that all of the "gaming activity" associated with DRB occurred on Indian lands, the patrons' act of placing bets or wagers over the internet while located in a jurisdiction where those bets or wagers was illegal makes Iipay's decision to accept financial payments associated with those bets or wagers a violation of the UIGEA.
Desert Rose Casino is exclusively a server-based bingo game that allows patrons to play computerized bingo over the internet.
Iipay Nation is a federally recognized Indian tribe with tribal lands located in San Diego County, California.
IIPAY NATION OF SANTA YSABEL, AKA Santa Ysabel Band of Diegueno Mission Indians, AKA Santa Ysabel Band of Diegueno Mission Indians of the Santa Ysabel Reservation; SANTA YSABEL INTERACTIVE, a tribal economic development entity; SANTA YSABEL GAMING COMMISSION; SANTA YSABEL TRIBAL DEVELOPMENT CORPORATION; ANTHONY BUCARO; DAVID CHELETTE; MICHELLE MAXCY; VIRGIL PEREZ; BRANDIE TAYLOR; DAVID VIALPANDO, Defendants-Appellants.
Battaglia, District Judge, Presiding Argued and Submitted March 16, 2018 San Francisco, California 2 CALIFORNIA V.
IIPAY NATION OF SANTA YSABEL Filed August 2, 2018 Before: M.
Margaret McKeown, Julio M.
Desert Rose Casino is exclusively a server-based bingo game that allows patrons to play computerized bingo over the internet.
Iipay Nation is a join casino new brighton closing recognized Indian tribe with tribal lands located in San Diego County, California.
Fuentes, United States Circuit Judge for the U.
Court of Appeals for the Third Circuit, sitting by designation.
It has been prepared by court staff for the convenience of the reader.
IIPAY NATION OF SANTA YSABEL 3 bet or wager on a game of Desert Rose Casino while located in California, violated the UIGEA, and was not protected by the Indian Gaming Regulatory Act.
Crowell arguedCrowell Law Office-Tribal Advocacy Group, Sedona, Arizona; Little Fawn Boland, Ceiba Legal Https://tayorindustry.com/casino/how-many-casinos-in-manchester.html, Mill Valley, California; Kevin C.
Torngren, Deputy Attorney General; Sarah J.
Drake, Senior Assistant Attorney General; Xavier Becerra, Attorney General; Office of the Attorney General, Sacramento, California; for Plaintiffs-Appellees.
IIPAY NATION OF SANTA YSABEL OPINION BEA, Circuit Judge: This case presents an issue of first impression: Does the Indian Gaming Regulatory Act, 25 U.
§ 2701, et seq.
Because we conclude that the Unlawful Internet Gambling Enforcement Act, 31 U.
§ 5361, et seq.
Iipay operated a traditional, brick-and-mortar casino on its tribal lands, but the casino failed and Iipay no longer conducts traditional gambling activity at the casino.
DRB is a serverbased bingo game that allows patrons to play computerized bingo over the internet.
Like traditional bingo, participants in DRB purchase cards labeled with a grid of numbers.
Instead, Iipay offered DRB to all California residents over 18 years of age exclusively through the internet.
The patron must then register, create an account, and fund the account either via a credit card or an electronic funds transfer.
The Requested tab shows the information from the Request Form—denomination of game, number of games, number of cards per game, and playback theme.
Once the number of patrons participating in the game reaches the pre-determined minimum number of participants set by DRB, the timer begins to count down.
IIPAY NATION OF SANTA YSABEL 7 bingo card, by the proxy.
Instead, the proxy is a passive observer and the DRB software automatically conducts all aspects of gameplay, from drawing the numbers to daubing the cards.
Under the completed tab, the patron can choose to view a video replay of the completed bingo game, which is presented in the selected graphical theme e.
The replay video shows the bingo card the patron purchased and a video recreation of the numbers being drawn and daubed.
At the end of the video, the patron is informed whether and how much the patron won.
Iipay launched DRB on November 3, 2014.
On December 12, 2014, the district court issued a temporary restraining order prohibiting Iipay casino santa ysabel continuing to operate DRB during the pendency of this litigation.
DRB has remained dormant ever since.
After discovery, the State of California and the United States filed separate motions for summary judgment.
The State of California millionaire from summary judgment on two grounds.
IIPAY NATION OF SANTA YSABEL and Iipay regarding Class III gaming.
§ 5361, et seq.
§ 2701, et seq.
The district court ruled that DRB violated the UIGEA and entered a permanent injunction prohibiting Iipay from operating DRB.
Statutory interpretation presents a question of law, which we casino santa ysabel review de novo.
As a result, that issue is not before us on appeal.
IIPAY NATION OF Casino in noida YSABEL 9 III This case presents an issue of first impression regarding the interrelation between IGRA and the UIGEA.
No other circuit has opined on whether an Indian tribe can offer online gaming to patrons located off Indian lands in jurisdictions where such gambling is illegal.
The issue hinges on the interpretation of the key provisions of IGRA and the UIEGA.
Thus, to analyze this issue, it is helpful to review the statutory framework of IGRA and the UIEGA.
The Statutory Framework IGRA was passed to provide a regime for regulating gaming on Indian lands.
§ 2710 a 2.
As discussed above, DRB like other forms of bingo, generally is a Class II game.
See discussion supra at 8 n.
But the statute nowhere referenced the internet, or other networking capabilities that reach beyond Indian lands.
IIPAY NATION OF SANTA YSABEL The UIGEA was passed to regulate online gambling.
Unlike IGRA or other gambling regulations, the UIGEA does not make gambling legal or illegal directly.
§ 5362 10 A emphasis added.
Thus, the UIGEA does not prohibit otherwise legal gambling.
IIPAY NATION OF SANTA YSABEL 11 United States, so long as the bet was legal in the jurisdiction hosting the servers for a game Las Vegas or Atlantic City, for instance, in the case of online poker.
In effect, the UIGEA prevents using the internet to circumvent existing state and federal gambling laws, but it does not create any additional substantive prohibitions.
This is likely due to the fact that most IGRA cases, including Michigan v.
Bay Mills Indian Community.
§ 2710 d 1.
§ 2710 a 2.
Bay Mills Indian Community.
The tribe argued that the lottery was protected under IGRA.
We reversed the district court, but did so without reaching the merits of the IGRA argument.
Specifically, Michigan argued that although the casino was located off of Indian lands, the tribe licensed the casino and completed administrative functions from its headquarters on its tribal lands.
The district court granted a preliminary injunction to Michigan, the tribe appealed, and the Sixth Circuit vacated the injunction.
Iipay does not contest these findings on appeal.
Two key conclusions can be drawn from these uncontested findings.
Iipay has admitted that patrons initiate bets or wagers within the meaning of casino santa ysabel UIGEA while located in California, where those bets are illegal.
Iipay provides no basis to depart from this common casino santa ysabel, straightforward analysis.
See discussion, infra at 14—17.
See Bay Mills, 134 S.
Iipay argues strenuously that this analysis is flawed because any determination regarding the legality of DRB 12 Iipay argues that the location of a bet or wager casino santa ysabel be determined under contract principles and that a contract including a wager is formed in the place of acceptance.
IIPAY NATION OF SANTA YSABEL must be made exclusively through examining IGRA, without reference to the UIGEA.
First, absent a direct conflict, courts should give effect to coexisting federal statutes.
Here, there is no direct conflict between IGRA and the UIGEA and, thus, we give effect to the provisions of both statutes.
Second, although Iipay is correct that the UIGEA does not alter IGRA, that does not mean that the UIGEA did not outlaw certain financial transactions associated with gaming on Indian lands facilitated by the internet, a topic on which IGRA is silent.
For instance, because the UIGEA specifies that it does not alter either federal or state laws regarding gambling, a state like Nevada could theoretically make the same argument advanced by Iipay to justify accepting wagers over the internet made by residents of other states.
Effectively, Nevada could argue that accepting wagers in its jurisdiction was legal before the UIGEA and, thus, must be legal after its passage as well.
Given the realities of the internet, https://tayorindustry.com/casino/shows-at-live-casino.html interpretation would render the UIGEA all but meaningless.
Thus, it can be true that the UIGEA did not alter IGRA, and it can also be true that DRB is subject to and violates the UIGEA.
IIPAY NATION OF SANTA YSABEL payments associated with those bets or wagers a violation of the UIGEA.
Patrons' act of placing a bet or wager on a game while located in California constitutes gaming activity that is not located on Indian lands, violates the Unlawful Internet Gambling Enforcement Act, and was not protected by the Indian Gaming Regulatory Act.
Disclaimer: Justia Annotations is a forum for attorneys to summarize, comment on, and analyze case law published on our site.
Justia makes no guarantees or warranties that the annotations are accurate or reflect the current state of law, and no annotation is intended to be, nor should it be construed as, legal advice.
Contacting Justia or any attorney through this site, via web form, email, or otherwise, does not create an attorney-client relationship.
Patrons' act of placing casino santa ysabel bet or wager on a game while located in California constitutes gaming acti.

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Santa Ysabel Resort & Casino was an Indian owned and operated casino located on the Santa Ysabel Indian Reservation in Santa Ysabel, California. It was owned and operated by Santa Ysabel Band of Diegueño Indians. The casino had 349 slot machines and six gaming tables as well as live poker and live blackjack.


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