Midwestern Enterprises, Inc. v. Stenehjem

Summary

The Supreme Court of North Dakota affirmed summary judgment declaring Midwestern Enterprises' Lucky Strike two-minute phone card dispensing device a gambling apparatus and a coin-operated gaming device under North Dakota law. The court held that the chance to win cash prizes constituted consideration, prize, and chance, despite the device dispensing a phone card and offering limited free game pieces. The court also held that the device did not qualify for the bona fide vending-machine exception because it incorporated gambling features.

Holdings

1. The Lucky Strike device was a gambling apparatus under N.D.C.C. § 12.1-28-01(3) because it was used in the playing phases of gambling activity. The device involved consideration, a chance-based prize, and a prize, even though each paid play also delivered a phone card.
2. The availability of a limited number of free game pieces did not eliminate consideration or exempt the Lucky Strike game from North Dakota's gambling and lottery definitions.
3. The Lucky Strike device was a coin-operated gaming device under N.D.C.C. § 12.1-28-02(4)(a) and did not qualify for the bona fide vending-machine exception because gambling features were incorporated into it.

Questions Presented

1. Whether the Lucky Strike device was a gambling apparatus under N.D.C.C. § 12.1-28-01(3), based on whether the game constituted gambling under N.D.C.C. § 12.1-28-01(1).
2. Whether the availability of free game pieces meant that the Lucky Strike game lacked consideration and was merely a promotional sweepstakes rather than gambling or a lottery.
3. Whether the Lucky Strike device was a coin-operated gaming device under N.D.C.C. § 12.1-28-02(4)(a) and whether it qualified for the bona fide vending-machine exception in § 12.1-28-02(4)(b).

Disposition

affirmed