Statutory Interpretation – Chance Promotion Exception – Gambling Machines

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WI Court of Appeals – District I

Case Name: Quick Charge Kiosk LLC, et al. v. Brad Schimel

Case No.: 2018AP947

Officials: Brash, P.J., Brennan and Dugan, JJ.

Focus: Statutory Interpretation – Chance Promotion Exception – Gambling Machines

Quick Charge Kiosk LLC and Jeremy Hahn (collectively Quick Charge) appeal the trial court’s order granting the Attorney General’s motion for summary judgment declaring that Quick Charge’s “cell phone charging machines” (Machines), also referred to as cell phone charging kiosks, constituted illegal gambling machines. Quick Charge argues that its Machines are lotteries, not gambling machines, under WIS. STAT. § 945.01(5) (the lottery subsection) and WIS. STAT. § 100.16(2). It asserts that the Machines do not involve consideration under the lottery subsection because its machines use in-pack chance promotions, which the lottery subsection exempts from its definition of consideration. It further argues that, because exempted lotteries do not constitute gambling, the Machines cannot be deemed to be gambling machines. The Attorney General argues that because the lottery definition in WIS. STAT. § 945.01(5) explicitly references the in-pack chance promotion of WIS. STAT. § 100.16(2), the chance promotion exception only applies to lotteries. He further argues that the in-pack chance promotion exception does not apply to the definition of consideration in § 945.01(3) because the gambling machine subsection does not include any reference to § 100.16(2). He argues that because the Machines are gambling machines they are illegal. We agree with the trial court’s determination and, therefore, affirm.

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.