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Smart Summary

Factual and Procedural Background

Kenneth Uston, a professional blackjack player who employs a card counting system to improve his odds, was barred by Resorts International Hotel from playing blackjack at its casino solely because of his skill as a card counter. The Casino Control Commission (the Commission), responsible for regulating casino game rules, had established blackjack rules that did not prohibit card counting. Resorts admitted that it could alter rules to eliminate the card counters' advantage but chose not to because such changes would slow the game and reduce casino revenue. After being barred on January 30, 1979, Uston appealed Resorts' action to the Commission, which upheld Resorts' right to exclude him based on a common-law right to exclude undesirables, relying principally on the case Garifine v. Monmouth Park Jockey Club. Uston then appealed this Commission decision to the Superior Court of New Jersey, Appellate Division.

Legal Issues Presented

  1. Whether a casino has a common-law right to exclude a player solely because that player uses a skill (card counting) that gives an advantage in blackjack.
  2. Whether the Casino Control Commission has exclusive statutory authority to establish standards for exclusion of persons from casinos, thereby abrogating any common-law right of casinos to exclude players for reasons other than those defined by the Commission.
  3. Whether Resorts' exclusion of Uston was lawful under the Casino Control Act and applicable case law.

Arguments of the Parties

Appellant's Arguments

  • Uston argued that he was excluded solely because of his skill in card counting, which is not an illegal or undesirable activity under the law or regulations.
  • He challenged the Commission's reliance on Garifine, contending that it did not support exclusion based on skill or advantage in play.
  • He asserted that Resorts’ exclusion violated the statutory scheme under the Casino Control Act, which vests exclusion authority exclusively in the Commission.

Respondent Resorts' Arguments

  • Resorts contended that it had a right to exclude any player it chose, including card counters, to protect its financial interests.
  • It admitted that rule changes could eliminate the advantage card counters have but declined to implement such changes because they would slow play and reduce revenue.
  • Relied on the Commission’s decision and on the precedent of Garifine to support its common-law right to exclude undesirable persons.

Casino Control Commission's Arguments

  • The Commission upheld Resorts’ exclusion of Uston, relying on the common-law right to exclude undesirables as supported by Garifine.
  • Maintained that the casino’s discretion to exclude persons was broad and not limited by the Commission’s regulatory authority in this context.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Garifine v. Monmouth Park Jockey Club, 29 N.J. 47 (1959) Supports the common-law right of race track operators to exclude suspected undesirables. The court held that the Commission and Resorts overstated the scope of Garifine, which involved excluding a suspected bookmaker (an undesirable), not a skilled player like Uston.

Court's Reasoning and Analysis

The court analyzed the Commission’s reliance on Garifine and concluded that it was misapplied because Garifine concerned exclusion of "undesirables" such as suspected criminals, whereas Uston’s exclusion was based solely on his skill in card counting, which does not render him undesirable under the law. The court emphasized that the Casino Control Act, specifically N.J.S.A. 5:12-71, vests exclusive authority in the Commission to establish standards and maintain a list of persons to be excluded from casinos. This statutory scheme implies that individual casinos do not have independent authority to blacklist or exclude persons arbitrarily. Although the Commission had not yet exercised this delegated authority to exclude card counters, the court declined to opine on whether such exclusion would be permissible under the statute. Ultimately, the court found that Resorts’ exclusion of Uston was not authorized under the statute or common law.

Holding and Implications

The order of the Casino Control Commission dismissing Uston's complaint is reversed.

The court directed the Commission to order Resorts to admit Uston to its casino and permit him to play blackjack wherever offered. The decision directly restores Uston’s right to play blackjack at Resorts and clarifies that casinos do not have an inherent common-law right to exclude players for reasons other than those authorized by the Commission under the Casino Control Act. The opinion does not establish a new precedent on whether the Commission may exclude card counters under its statutory authority, leaving that question open for future determination.

KENNETH S. USTON, PLAINTIFF-APPELLANT, v. RESORTS INTERNATIONAL HOTEL, INC., DEFENDANT-RESPONDENT, AND NEW JERSEY CASINO CONTROL COMMISSION, INTERVENOR-RESPONDENT.

The opinion of the court was delivered by ALLCORN, P.J.A.D.

This is an appeal by Kenneth Uston, a professional blackjack player, who, concededly, has developed and utilizes a system of play (card counting) which can increase a blackjack player's chances at winning at the game. The Casino Control Commission (Commission), which is responsible for promulgating the rules of the games played at the casinos, established the rules of blackjack in such a fashion that a card counter seemingly could use his special skill to advantage and equalize or better the odds normally favoring the house.

At oral argument it was conceded by Resorts that the rules of play established by the Commission may be defined in such manner so as to virtually eliminate the advantage of the card counter, but that such rules of play would necessarily slow the game and thus reduce the number of games that may be played and completed during a given period of play. In turn, this would effectively lessen the "take" of the casino on the blackjack games, all other things being equal.

The casino, aware of the card counters' advantage, decided to prohibit those players from playing blackjack and, on January 30, 1979, Uston was barred by Resorts from its blackjack tables, solely for the reason that he was a professional card counter. Uston was permitted to avail himself of any other game the casino offered.

Uston appealed Resorts' action to the Commission which determined that Resorts had a common-law right to exclude any person it chose, for whatever reason it chose, relying principally upon the case of Garifine v. Monmouth Park Jockey Club, 29 N.J. 47 (1959).

In our view, the Commission's reading of Garifine extends the breadth of the decision far beyond its actual holding and effect. Garifine involved the propriety of the exclusion and expulsion of Garifine (a suspected bookmaker) from the Monmouth Park racetrack, as an undesirable. The Supreme Court's determination simply posited its stand upon "the many judicial decisions which have sustained the common-law right of race track operators to exclude suspected undesirables." ( Id. at 57.

However one may define an "undesirable," there is no suggestion here that Uston is an undesirable and, as such, that he may be excluded or expelled from either the casino or simply from the blackjack games. Indeed, it is only Uston's skill as a player of blackjack that gives rise to Resorts' desire to bar him from participating as a player at the blackjack games. At the same time, Resorts concedes that the advantage that his skill brings him is largely or entirely lost in those blackjack games played with six decks of cards and where the cut card (used to mark the shuffle point) is moved further up from the bottom than is at present required by the Commission's rules of play. As noted earlier, according to Resorts the use of this procedure is not preferred in any event because it slows down play, which decreases the earnings of the casino from the blackjack operations.

We note also that the Casino Control Act directs the Casino Control Commission to compile a list of persons to be excluded or expelled from gambling casinos. The pertinent portions of the statute, N.J.S.A. 5:12-71, provide:

a. The Commission shall, by regulation, provide for the establishment of a list of persons who are to be excluded or ejected from any licensed casino establishment. Such provisions shall define the standards for exclusion, and shall include standards relating to persons:
(1) Who are career or professional offenders as defined by regulation of the commission;
(2) Who have been convicted of a criminal offense under the laws of any state or the United States, which is punishable by more than 6 months in prison, or any crime or offense involving moral turpitude; or
(3) Whose presence in a licensed casino would, in the opinion of the commission, be inimical to the interest of the State of New Jersey or the licensed gaming therein, or both.
The commission shall promulgate definitions establishing those categories of persons who shall be excluded pursuant to this section, including cheats and persons whose privileges for licensure have been revoked.

. . . . . . . .

It is manifest by the terms of the above section that it is the Commission which is solely vested with the authority to designate persons to be excluded from the casinos, under reasonable standards first established by the Commission. It is plainly implicit therein that a casino itself is not empowered to so blacklist and exclude a person — despite the apparent failure of the Commission as yet to execute this delegation of authority. Thus, even making the dubious assumption that Garifine does espouse a common-law right in a gambling casino to exclude or to expel any person who, for any reason, may be persona non grata, such common-law rule has been abrogated by the foregoing provisions of N.J.S.A. 5:12-71a delegating such authority to the Commission exclusively. Whether, under the provisions of this statute, the Commission is empowered to promulgate standards such as would exclude card counters from blackjack games at the casinos, is not now before us and we express no opinion thereon.

Accordingly, and for the foregoing reasons, the order of the Casino Control Commission of December 31, 1979, dismissing the complaint of Uston, is reversed, and the Commission hereby is directed to enter an order enjoining respondent Resorts to admit Uston to its casino and to permit him to engage in the game of blackjack wherever offered at said casino operated by Resorts.

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USTON v. RESORTS INT'L HOTEL, INC
(May 11, 1981)