Opinion ID: 2060941
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: On June 19, 1992, Houghton purchased a keno ticket at the Brothers Lounge in Omaha, Nebraska. Keno is a type of lottery in which, for each game played, players determine an amount of money to bet and select up to 20 numbers from a total of 80 possible numbers by marking those numbers on a betting slip. Players then take the betting slip to a keno writer, who inputs the selected numbers into a computer, which in turn generates a paper ticket showing the game number played, numbers selected by the player, and the amount of the bet. After a period of approximately 5 minutes, the game is closed to any further bets, and 20 numbers are drawn randomly using a blower machine or a random number generator. A player wins if he or she correctly matches some or all of the numbers on the paper ticket with the numbers drawn randomly by the blower machine. The amount of money won is dependent upon the total amount of numbers chosen by the player and the amount of the numbers that are guessed correctly. The rules of keno and the amounts of prize money that can be won are printed in a document called the Pay Book. Keno games at Big Red Keno are conducted approximately every 5 minutes throughout the day at the main location. Each game is separately numbered, and winners are tracked by computer. Outside the main location, the same keno games are also played at satellite locations, such as the Brothers Lounge, through the use of a computer link. Sometimes, there are also audio links between the main location and satellite locations. The Nebraska Department of Revenue regulates keno and requires that games played at a satellite location be closed at the same time they are closed at the main location. The regulations also state that no keno ticket may be written after a game has closed and the number selection process has begun. Each keno betting ticket states on the front that it is subject to conditions printed on the back of the ticket and in the Pay Book. The reverse side of the keno ticket states: This bet is accepted subject to the rules of the game set forth below and in the Big Red Keno Pay Book, and by playing the game all players accept such rules. If you do not have a Pay Book, request one before playing. The ticket further states that errors in the ticket must be corrected before the game commences and before leaving the window, and that liability for errors is limited to a refund of the purchase price, which must be requested before the game commences. The rules of the game listed in the Pay Book state: Big Red Keno reserves the right to verify the legitimacy of all prizes.... Big Red Keno reserves the right to disclaim the payment of prizes if the balls or equipment have been tampered with or if the procedures prescribed for the conduct of the game by the City of Omaha or the State of Nebraska have been violated. While Houghton was at the Brothers Lounge on June 19, 1992, the lounge experienced problems with the computer link between the main keno location and its satellite location. The computer link was down for a period of approximately 30 minutes, during which time keno games continued to be played at the main keno location. Brothers Lounge also maintained an audio link with the main location that audibly broadcast the winning numbers of the games at the main location as they were being played. During the time the computer was down at the Brothers Lounge, game No. 480 was played and its winning numbers were broadcast over the audio system at the lounge. At the time the winning numbers for game 480 were broadcast, Houghton had filled out several betting slips and was waiting for the computer link to be reestablished so that he could place his bets. While Houghton was waiting, he heard the numbers of the games at the main location being broadcast, threw away his previously marked betting slips, and filled out two new slips that were marked with numbers he heard over the audio system. At some point after the completion of game 480, the computer system began working again and Houghton placed his bets. Although game 480 had been played approximately 13 minutes before Houghton placed his bets, he received a ticket that listed game 480 as one of the games he participated in. As a result, Houghton held a ticket for game 480, even though the ticket was purchased after that game had been played. The record includes an affidavit from Houghton stating that he did not intend to bet on a game that had already been played. Houghton did not attempt to have his ticket voided or corrected after he received it. A subsequent computer scan of the ticket at the Brothers Lounge showed it to be a winning ticket in the amount of $200,000. Houghton went to the main keno site to attempt to collect on the ticket. However, the Charitable Gaming Division of the Nebraska Department of Revenue determined that Houghton's ticket was mistakenly issued in violation of the procedures prescribed for the conduct of the game of keno by the State of Nebraska. Following this determination and a review of the keno rules, statutes, and regulations, Big Red Keno determined that Houghton's ticket was invalid and did not pay him the prize money for his ticket. Although Big Red Keno did not pay Houghton his prize money, the record indicates that Big Red Keno had sometimes authorized the payment of prize money on losing tickets when a computer scan of the ticket mistakenly showed it as a winning ticket. The record also indicates that Big Red Keno had previously chosen to pay Houghton $1,000 on a ticket that should have won only $30 when there had been an error made by the keno writer. Houghton brought a contract action against Big Red Keno in district court. Big Red Keno counterclaimed, seeking damages for fraud and conspiracy, and requesting costs and attorney fees. In August 1994, a motion by Big Red Keno for summary judgment on Houghton's claim was denied. Following additional discovery and the transfer of the case to a different judge, Big Red Keno renewed its summary judgment motion on Houghton's claim. Houghton also moved for summary judgment. The district court granted Big Red Keno's motion, and Houghton appeals.