Oregon Racing, Inc. v. Oregon State Lottery

Under ORS 167.117(21)(b), the terms "house bank" and "house income" encompass their ordinary meanings. Operating a "house bank" includes keeping, selling, and redeeming chips, and "house income" includes income related to securing the premises and soliciting players.

Oregon Racing Inc. (ORI) sought judicial review of the Oregon State Lottery’s declaratory ruling that it engaged in unlawful gambling by charging an admission fee to its poker room and exchanging player money for poker chips. ORI argued the Oregon legislature’s intention in the statute prohibiting “house banks” covered only two distinct types of operations. ORI further argued that the legislature intended only to prevent collecting income directly from games, excluding indirect income. The Lottery argued that the ordinary meaning of the terms "house bank" and "house income" represented the legislature's intent, rendering ORI’s practices unlawful gambling. Under ORS 167.117(21)(b), the terms "house bank" and "house income" encompass their ordinary meanings. A "house bank" includes keeping, selling, and redeeming chips, and "house income" includes income related to securing the premises and soliciting players. The Court found that the legislature's use of the broader term "house bank" meant they did not intend to limit its meaning to only two types of operations. The court found that other gambling laws suggest the operation of a social game includes "acts directed toward the arrangement or facilitation of the game." ORS 167.117(7). Therefore, "house income" from the social game "operation" must also include income from "acts directed toward the arrangement or facilitation of the game." Affirmed.