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Statutory Interpretation – Gambling Machine

By: Derek Hawkins//August 5, 2020//

Statutory Interpretation – Gambling Machine

By: Derek Hawkins//August 5, 2020//

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WI Supreme Court

Case Name: Quick Charge Kiosk LL, et al. v. Josh Kaul

Case No.: 2020 WI 54

Focus: Statutory Interpretation – Gambling Machine

Quick Charge Kiosk LLC is the commercial owner of kiosks that enable customers to pay for an opportunity to win (or lose) money through a video game based on chance. After its kiosks were deemed illegal gambling machines by the attorney general and law enforcement, Quick Charge and its owner brought this declaratory judgment action.

Quick Charge asserts that its kiosks are not gambling machines because they do not satisfy the consideration requirement under the gambling machine definition in Wis. Stat. § 945.01(3) (2017-18). Quick Charge points to the definition of consideration for lotteries under § 945.01(5) and an exception from that definition for “in-pack chance promotions” under Wis. Stat. § 100.16(2). This same definition and exception should apply to gambling machines, Quick Charge contends, suggesting its kiosks are legally compliant in-pack chance promotions. Further, Quick Charge argues there is no consideration even if the ordinary legal definition of consideration applies because a free play option is available. We disagree with these arguments.

While the lottery statute expressly excludes in-pack chance promotions from its definition of consideration, the gambling machine statute does not. The logical implication of this textual distinction is that meeting the requirements of an in-pack chance promotion does not exempt a mechanical device from the consequences of being an illegal gambling machine. Moreover, consideration is present here because the kiosks can be used exactly like a standard gambling machine notwithstanding a free play option also being available. That is, customers can pay for an opportunity to obtain something of value by chance. We therefore hold that Quick Charge’s kiosks meet the definition of a gambling machine under Wis. Stat. § 945.01(3).

Affirmed

Concur:

Dissent:

Full Text


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.

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