Summary
The Washington Supreme Court held that Internet Community & Entertainment Corp., operating Betcha.com, engaged in professional gambling under Washington’s gambling act. The court concluded that Betcha’s practice of charging users fees for the opportunity to place bets constituted bookmaking, even though Betcha did not take positions on the bets and losing bettors could decline to pay. The court also held that Betcha transmitted gambling information and used gambling records, and reinstated summary judgment for the State.
Topics
Practice areas
Questions Presented
- Whether Betcha's online betting platform engaged in bookmaking under RCW 9.46.0213.
- Whether Betcha's bookmaking constituted professional gambling under RCW 9.46.0269.
- Whether Betcha transmitted gambling information in violation of RCW 9.46.240.
- Whether Betcha used gambling records in violation of RCW 9.46.217.
- Whether the existence of an option not to pay a losing wager prevented the transactions from constituting bookmaking or professional gambling.
Holdings
- Betcha engaged in bookmaking because it charged users a fee for the opportunity to place bets, even though it did not take a position on the wagers.
- The term "bet" in RCW 9.46.0213 does not require that the bet be honored or that betting losses be paid, and the statute does not require the bet to be a "gambling bet."
- Betcha engaged in professional gambling because it engaged in bookmaking, which independently satisfies RCW 9.46.0269(1)(d).
- Because Betcha engaged in professional gambling, it transmitted gambling information in violation of RCW 9.46.240.
- Because Betcha engaged in professional gambling, it used gambling records in violation of RCW 9.46.217.
Key quotations
“It was unambiguously engaged in “bookmaking” as that term is defined under the gambling act.” (694)
“We hold that within the plain meaning of RCW 9.46.0213, “bookmaking” is charging a fee for the opportunity to place a bet and the term “bet” does not require that the bet be honored or betting losses be paid.” (695)
“We hold that Betcha was engaged in professional gambling because it engaged in “bookmaking” as that term is defined under the gambling act.” (697)
Factual background
Betcha.com operated an online person-to-person betting platform that charged users fees to post, accept, counter, or prominently display wagers. Users funded accounts, and Betcha escrowed wagered funds pending the outcome of an event. Although losing bettors could elect not to pay within 72 hours, Betcha maintained honor ratings and transferred escrowed funds to winning bettors when losses were not timely disputed.
Procedural history
The Gambling Commission ordered Betcha to cease operations after determining that Betcha was engaged in professional gambling. The trial court granted summary judgment to the State, concluding that Betcha's activities constituted gambling, bookmaking, professional gambling, transmission of gambling information, and use of gambling records. The Court of Appeals reversed in a split decision, but the Supreme Court reversed the Court of Appeals and reinstated summary judgment for the State.
Remand instructions
The Court of Appeals decision was reversed, and summary judgment in favor of the State was reinstated.