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Thomas P. Donovan v. Grant Victoria Casino & Resort, L.P.

Citation: Not availableDocket: 49S02-1003-CV-124

Court: Indiana Supreme Court; September 30, 2010; Indiana; State Supreme Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves the Indiana Supreme Court addressing the dispute between a card counter, Donovan, and Grand Victoria Casino Resort concerning his exclusion from playing blackjack. Donovan, identifying as an 'advantage player', was banned for using card counting strategies and subsequently filed a lawsuit for breach of contract and sought declaratory relief. The trial court ruled in favor of the casino, a decision partially upheld by the Indiana Court of Appeals which reversed the exclusion ruling, positing that Indiana's regulatory framework limits casinos' exclusion rights. However, the Supreme Court granted transfer, ultimately supporting the casino's common law right to exclude patrons. The court affirmed that Indiana's Riverboat Gambling Act, alongside the Indiana Gaming Commission regulations, does not abrogate this common law right. The regulations do not expressly prohibit card counting, and exclusion remains within the casino's discretion. The Supreme Court emphasized the principle that private property owners, including casinos, have the right to exclude patrons, subject to civil rights laws. The court's decision underscored that business judgment should guide decisions on patron exclusion, reinforcing the autonomy of casino operators in such matters. Dissent was noted, arguing against equating casinos with traditional businesses due to legislative and regulatory oversight. Ultimately, the court ruled in favor of the casino, affirming its right to exclude the plaintiff based on skillful play, aligning with the regulatory framework.

Legal Issues Addressed

Business Judgment in Patron Exclusion

Application: The court recognized that decisions on patron exclusion are a matter of business judgment, appropriate for casinos to determine and are not subject to judicial scrutiny unless statutory exceptions apply.

Reasoning: The ruling emphasizes that decisions regarding admission are matters of business judgment, best assessed by market forces rather than courts.

Common Law Right of Exclusion for Private Property Owners

Application: The Indiana Supreme Court affirmed that casino operators, as private property owners, have the common law right to exclude patrons, except where civil rights laws apply.

Reasoning: The Supreme Court emphasized that the common law right of private property owners allows them to exclude visitors, except where civil rights laws apply, and this right extends to casino operators.

Preemption of Common Law Rights

Application: The court rejected the argument that preemptive gaming regulations eliminate common law exclusion rights, maintaining that such rights are not inherently negated by regulatory schemes.

Reasoning: The conclusion drawn from both cases indicates that while regulations shape gaming practices, they do not inherently eliminate the common law right to exclude individuals under various circumstances.

Regulation and Common Law Exclusion Rights

Application: The court determined that Indiana's Riverboat Gambling Act and regulatory framework do not abrogate the common law right of exclusion retained by casino operators.

Reasoning: The Riverboat Gambling Act does not undermine this common law right, thus supporting Grand Victoria's decision to exclude Donovan from blackjack for employing card counting.

Role of Indiana Gaming Commission

Application: The Indiana Gaming Commission's regulations do not explicitly prohibit card counting, allowing casinos to exclude patrons for lawful reasons based on their discretion.

Reasoning: The IGC's regulations impose minimum standards for blackjack and require casinos to submit their game rules for approval, with additional rules subject to prior authorization.