Opinion ID: 413395
Heading Depth: 2
Heading Rank: 1

Heading: Enforcement of the Prize Agreement

Text: 10 Smith, the Williams, and the Government argue that the prize agreement of the illegal raffle is unenforceable under the territory's gambling laws. The district court held that although the legislature has prohibited the running of unlicensed private raffles, V.I.Code Ann. tit. 14 Sec. 1222 (1964), and the selling of chances in such raffles, Sec. 1223, it has not specifically prohibited the purchase of a ticket in an illegal raffle. Thus, the district court concluded that although a promise to conduct an unlicensed private raffle is always unenforceable, the promise to provide a prize to the raffle winner is not unenforceable unless against public policy. The district court held that in this case, enforcement of the prize agreement was not against public policy. 11 Smith, the Williams, and the Government argue that the district court erred when it held that Virgin Islands law does not prohibit the purchase of an illegal raffle ticket. They rely on V.I.Code Ann. tit. 14 Sec. 1224 as well as sections 1221 through 1223. Section 1221 defines a lottery or raffle as a particular kind of game of chance, and sections 1222 and 1223 prescribe criminal penalties for conducting and selling tickets in raffles other than the official Virgin Islands lottery or those operated by permit. 1 Section 1224 prohibits gambling in general and prescribes criminal penalties for conducting or playing any game of chance. 2 12 Although it is clear that sections 1222 and 1223 do not prohibit the purchase of an illegal raffle ticket, Smith, the Williams, and the Government argue that such conduct is subject to the criminal penalties of the general gambling provisions of section 1224. We disagree. 13 Section 1224 is a penal statute that authorizes up to 180 days of imprisonment. Ambiguity concerning the applicability of a criminal statute is resolved in favor of lenity. United States v. Bass, 404 U.S. 336, 347-48, 92 S.Ct. 515, 522, 30 L.Ed.2d 488 (1972). We think that such an ambiguity exists where legislation dealing specifically with raffles at least suggests that raffles are not subject to the general gambling laws. Furthermore, the legislature of the Virgin Islands has chosen to allow private raffles operated by permit. Applying section 1224 to purchasers of illegal raffle tickets would thus subject to potential imprisonment those unlucky enough to purchase tickets from one who has failed to obtain a permit. We think that if the legislature intends such a result, it must manifest a clearer intent than this. 14 Because Virgin Islands law does not specifically prohibit the purchase of an illegal raffle ticket or the purchaser from entering into a prize agreement with the seller, we must determine whether enforcement of that prize agreement would be contrary to public policy. 15 We agree with the district court that on balance public policy does not counsel against enforcing this prize agreement in favor of a raffle winner who participated in no illegal conduct. Restatement (Second ) of Contracts Sec. 178. Under Virgin Islands law, Smith and Evelyn are the only culpable parties. Their raffle was illegal only because they failed to obtain a permit. There is no indication that Roach or Morgan knew or should have known that the Smith/Williams raffle was illegal.