Opinion ID: 2382879
Heading Depth: 2
Heading Rank: 1

Heading: a. state constitutional and statutory provisions concerning gambling

Text: In order to determine if a ballot title is sufficient, this court must determine what changes in the law the proposal would make. Moore v. Hall, 229 Ark. 411, 316 S.W.2d 207 (1958). The Constitution of Arkansas provides: No lottery shall be authorized by this State, nor shall the sale of lottery tickets be allowed. Ark. Const. art. 19, § 14. The identical provision was contained in the statehood constitution of 1836, the secession constitution of 1861, the military constitution of 1864, the reconstruction constitution of 1868, and the current constitution of 1878. The reason for the provision in all five constitutions is that lotteries, which are of ancient origin, had became so common and their influence had become so pernicious that they were singled out and treated differently from other forms of gambling. Since statehood, they continually have been constitutionally prohibited. As a result, the legislature has not been able to authorize lotteries. A lottery is defined as a game that is determined entirely by lot, or mere luck, and in which judgment, practice, or skill are to no avail. [T]o constitute a lottery it is essential not only that the element of chance is present, but also that it controls and determines the award of the prize, whatever it may be. Longstreth v. Cook, 215 Ark. 72, 80, 220 S.W.2d 433, 437 (1949). The constitutional section prohibiting lotteries does not operate as a blanket prohibition against gambling. It forbids only the legislative legalization of lotteries and the sale of lottery tickets. Scott v. Dunaway, 228 Ark. 943, 311 S.W.2d 305 (1958). Thus, the legislature can authorize forms of gambling other than a lottery. In 1838, the general assembly made illegal many forms of gambling. Many of the revised statutes of 1838 prohibiting various forms of gambling are brought forward in today's statutes. See Ark.Code Ann. §§ 5-66-101-5-66-119 (Repl.1993). The public policy against gambling, expressed by the legislature in 1838, was so strong that a losing bettor was authorized to file suit to recover his losses, but a winning bettor was prohibited from filing suit to collect his winnings. That public policy set by the general assembly is still in force. See Ark.Code Ann. § 16-118-103(a) & (b)(1) (1987). While gambling in general was made illegal by the general assembly, horse racing occurred with some frequency. See McLain v. Huffman, 30 Ark. 428 (1875). Likely, it was for this reason that the revised statutes of 1838 provided that a losing bettor was authorized to maintain a suit to recover losses, except that no bettor could recover money lost on any turf race. Ark.Code Ann. § 16-118-103(a)(3) (1987). Horse racing continued in various forms, and, in 1935, the general assembly legalized pari-mutuel betting on horse races. 1935 Ark. Acts 46 § 14. A suit was filed to determine whether Act 46 violated the constitutional provision against lotteries. This court held that pari-mutuel betting on a horse race was not determined by chance alone and therefore did not come within the constitutional prohibition against lotteries. Longstreth v. Cook, 215 Ark. 72, 220 S.W.2d 433 (1949). Sections 1 and 9 of Act 46 of 1935 provided for an Arkansas Racing Commission, and that the Commission could award franchises to operate a race track and hold racing meetings in such counties of the State as the Commission may believe there will be applicants for franchises. However, section 22 of the Act provided that if a majority of the voters in any county voted against racing no franchise could be awarded in that county. The holder of the franchise in Garland County apparently did not wish its franchise to be subject to the vagaries of the electors of that county. In November 1956, Amendment 46 to the Arkansas Constitution was passed by a vote of 219,835 to 161,630. It provides: Horse racing and pari-mutuel wagering thereon shall be lawful in Hot Springs, Garland County, Arkansas, and shall be regulated by the General Assembly. For deciding the issue now before us, it matters not whether the action was wise or imprudent, rather it matters only that the citizens of the State elevated horse racing and pari-mutuel betting in Hot Springs to the same constitutional levels as the right to peaceably assemble, article 2, section 4, and the right to liberty of the press and of speech, article 2, section 6. From that time, neither the voters of Hot Springs nor the voters of Garland County nor the general assembly could stop horse racing and pari-mutuel betting in Hot Springs. It can now be stopped only by another amendment to the state constitution. Current statutes provide that horse racing may be conducted in all political subdivisions of the State and the Arkansas Racing Commission is authorized to grant franchises to conduct horse races upon specified terms and conditions. Ark.Code Ann. §§ 23-110-204 & 23-110-301 (1987). Act 339 of 1935 provided for pari-mutuel wagering on greyhound racing. The 1935 Act was replaced by the current Arkansas Greyhound Racing Law of 1957. See Ark. Code Ann. §§ 23-111-101-515 (1987 & Supp.1993). Pari-mutuel wagering on greyhounds under this act does not violate the constitutional provision against lotteries. Scott v. Dunaway, 228 Ark. 943, 311 S.W.2d 305 (1958). The general assembly currently has the authority to repeal the act providing for pari-mutuel wagering on greyhound racing, and the qualified electors of any county in which a greyhound racing franchise is located can void a franchise. Ark.Code Ann. § 23-111-306(c) (1987).