Charity Gaming Locations Have No Property Interests In Having Millionaire Charity Poker Room Events

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Charity Gaming Locations have no property interests in having millionaire charity poker room events

Top Flight Entertainment v. Bill Schuette, et al Originating Case No. : 2:11-cv-15148, the 6th Circuit Court of Appeals

On Friday, September 6, 2013, the United States Court of Appeals for the Sixth Circuit issued its opinion in Top Flight Entertainment, Ltd. v. Schutte, et al., which both affirmed and overturned certain portions of an initial ruling by the United Stated District Court for the Eastern District of Michigan. Investigations conducted by the Michigan Gaming Control Board and Michigan State Police, unveiled multiple crimes of prostitution and illegal activity at the Top Flight strip club resulting in criminal convictions and a 7 day suspension of their liquor license.  Due to the illegal activity the Lottery Commissioner denied millionaire party event licenses at the location. Nevertheless, Top Flight filed a lawsuit claiming they were deprived of their constitutionally protected status as an “approved lessor” for millionaire parties without due process of law. (14th amendment claim). However, the 6th Circuit held that the millionaire party location had no property interests to millionaire party license events at their location and their “argument that they “accrued approved location/lessor status” as a protected entitlement is contradicted by Michigan law and [their] own complaint, as discretionary benefits are not constitutionally protected entitlements.” In fact, 6th Circuit Judge Damon Keith concurring with the majority stated: 

“It is undisputed that there is no state law that gives anyone in the public a right to gambling. Millionaire-Party licenses are completely discretionary. If the commissioner chooses to issue a license for a Millionaire Party, that license is given to a charity—not the venue where the event will be held. There is no license to lease space for a millionaire party. There is no process for approving a would be lessor.”

A First Amendment claim remains for further disposition by the District Court on the basis that the State’s enforcement action was allegedly taken in retaliation of Top Flight operating a strip club. Judge Keith in his dissent called such a claim implausible on its face.