Hotel Restaurant and Travel Law A Preventive Approach

Introduction o o o Exciting developments in the hospitality industry include the increased number

A Short History of Gambling o o o Not a recent phenomenon Chinese, Japanese,

A Short History of Gambling o o o (continued) The British colonization of America

A Short History of Gambling o o (continued) 1930 s— 21 states legalized racetrack

A Short History of Gambling o o (continued) Pari-mutuel betting—system of betting in which

Gambling Today o Thriving industry o Tribal gaming plays a major role o Also

Gaming Issues o Several legal issues are peculiar to casinos n n n Role

Resolution of Gaming Issues o Gambling commissions have original jurisdiction to the exclusion of

Casino Owes No Duty to Inform Patrons of Laws Relevant to Gambling o o

Exclusion of Card Counters Permissible o o o Someone who keeps track of cards

Exclusion of Card Counters Permissible (continued) o To counter counting advantage, a growing number

Slot Machines o Very popular casino gaming device o Sometimes malfunction o Results show

Contracts and Gambling Debts o o o Many casino patrons who bet large amounts

Contracts and Gambling Debts o o (continued) If gambler fails to pay, casino will

Compulsive/Problem Gamblers o Inability to refrain from gambling o Recognized psychological illness o Casino

Compulsive/Problem Gamblers (continued) o o o Compulsive gamblers can initiate placement of their name

Torts Involving Casinos o Negligence o Medical care o Strict liability COPYRIGHT © 2008

Criminal Activity at Casinos o o o Casino patron as crime victim Duty owed

False Imprisonment o o o Person is restrained against his will without justification A

Other Torts o Trademark infringement o Copyright infringement COPYRIGHT © 2008 by Delmar Learning.

Casinos and the Dram Shop Act o o o Most casino offer guests free

Casinos and the Dram Shop Act (continued) o o Claimed debt constituted damages from

Casinos and the Dram Shop Act (continued) o o o Dram Shop Act does

Riverboat Casinos and the Jones Act o o In some states, a riverboat located

Riverboat Casinos and the Jones Act (continued) o o Maritime laws—affect events occurring on

The Jones Act o o o Federal maritime law Enables employees injured while on

Casinos on Native American Reservations o o o Many casinos have been built on

Sovereign Authority o o o Tribes are separate from federal and state governments Have

Sovereign Authority o o (continued) Tribal sovereignty is subordinate only to the federal government

Lawsuits against Native American Tribes o Indian Gaming Regulatory Act (IGRA) o Passed by

Lawsuits against Native American Tribes o (continued) IGRA’s goal was to balance states’ interest

Lawsuits against Casino Employees o o Native American tribes will transfer management of casinos

Lawsuits against Casino Employees o o (continued) Question arises whether entities are entitled to

Dram Shop Act o o o Tribal immunity bars lawsuits for wrongful sale of

Indian Gaming Regulatory Act o o o Federal government maintains some oversight of gaming

Indian Gaming Regulatory Act (continued) o Class most highly regulated is Class III o

Indian Gaming Regulatory Act o (continued) IGRA mandates four requirements: n n Gaming must

Indian Gaming Regulatory Act o (continued) IGRA mandates four requirements: (continued) n n Gaming

Indian Gaming Regulatory Act o (continued) Compacts n n Written agreements between the state

Indian Gaming Regulatory Act o o o (continued) Where tribes undertake gaming operations without

Internet Gambling o Since 1995, online gambling has exploded in popularity o Online casinos

Internet Gambling o o o (continued) Land-based casinos in the United States are heavily

Theme Parks o Provide various attractions n n n Carnival rides Games of skill

Crowd Control o o o Parks attract large numbers of people on a daily

Crowd Control o The park is not required to tolerate customers who: n n

Amusement Rides o o o Represent fun for many Also present many opportunities for

Warnings about Rides o The park should alert potential riders to anticipated risks COPYRIGHT

Assumption of Risk o o o Rule of assumption of risk may apply Activity

Minimum Height Rules o o o For safety reasons, many rides have minimum height

Ride Safety— Governmental Regulations o o Require all rides to be in safe condition

Ride Safety— Governmental Regulations o o (continued) Violations can result in serious injury, even

Ride Safety— Governmental Regulations o o (continued) Serious felony—can result in long prison term

Ride Safety—Negligence o o o Freakish accidents can happen if attention to safety is

Fences o o o Some act as barriers to protect passersby Some are for

Other Attractions o Care of animals o Parades o Skating rinks o Other amusements

Admission Discounts o o o Parks occasionally offer promotional rates to residents of the

Season Passes o o o Allows holder free admission and possibly access to amusements

Hotel Spas o o Increasingly being offered in upscale hotels Offer a variety of

Hotel Spas o (continued) Services offered include: n n n n Massage Facials Body

Hotel Spas o o (continued) Various aspects of operating a spa can result in

Licensing o o o Evidences authorization from the state for licensee to offer specified

Licensing o o (continued) Providing service without a license is illegal Potential penalties for

Licensing o o (continued) For a person who administers service without a license, the

Sanitation and Nails o Most spas offer manicures and pedicures o The spa should

Wet and Slippery Floors o o o Spas often include shower facilities, hot tubs,

Effect of Liability Waiver o Spas often require customers to sign a waiver of

Effect of Liability Waiver o o (continued) If both parties agree and terms are

Property Stolen from Lockers o o o Spa patrons usually change clothes prior to

Massages o Administering a massage necessarily involves close personal contact o Often a customer

Tanning Booths o Equipment should be inspected to ensure properation COPYRIGHT © 2008 by

Slides: 71

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Hotel, Restaurant, and Travel Law: A Preventive Approach, Seventh Edition Chapter 16 Specialized Destinations— Casinos, Theme Parks, Spas, and Condominium Hotels COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Introduction o o o Exciting developments in the hospitality industry include the increased number of casinos, theme parks, and spas These facilities present unique management challenges They also create unique legal issues and applications COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

A Short History of Gambling o o o Not a recent phenomenon Chinese, Japanese, Greeks, Romans, and Egyptians played games of skill and chance as early as 2300 B. C. European colonists and Native Americans COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

A Short History of Gambling o o o (continued) The British colonization of America was partly financed through lottery proceeds States outlawed virtually all types of gambling by 1910 By 1931 Nevada legalized casinos COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

A Short History of Gambling o o (continued) 1930 s— 21 states legalized racetrack gambling and low-stakes charity bingo 1940 s and 1950 s—most states modified laws to allow pari-mutuel betting COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

A Short History of Gambling o o (continued) Pari-mutuel betting—system of betting in which winners share the total stakes minus a percentage paid to the management 1990 s—riverboat casinos became popular COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Gambling Today o Thriving industry o Tribal gaming plays a major role o Also popular is online gambling o Highly regulated by government o State-sponsored gambling commissions oversee casinos’ operations COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Gaming Issues o Several legal issues are peculiar to casinos n n n Role of state gaming commissions in resolution of disputes involving wagering outcomes Blackjack players who are card counters Malfunctioning slot machines Casinos granting credit to players Compulsive gamblers COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Casino Owes No Duty to Inform Patrons of Laws Relevant to Gambling o o o Patrons were arrested for violating gambling laws of which they were unaware Asserted as a defense a duty on the casino to inform them of the law Courts have rejected existence of such a duty COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Exclusion of Card Counters Permissible o o o Someone who keeps track of cards played in blackjack As cards in shoe decrease, likelihood of cards not yet played coming up increases Card counter secures an advantage in the odds COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Exclusion of Card Counters Permissible (continued) o To counter counting advantage, a growing number of casinos use a device that automatically shuffles cards played back into the shoe COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Contracts and Gambling Debts o o o Many casino patrons who bet large amounts of money will establish credit with the casino Contractual relationship, not unlike Visa or Master. Card Gamblers often lose COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Contracts and Gambling Debts o o (continued) If gambler fails to pay, casino will likely pursue in court Gambler can assert any applicable contract defense COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Compulsive/Problem Gamblers o Inability to refrain from gambling o Recognized psychological illness o Casino industry has addressed this in several ways COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Compulsive/Problem Gamblers (continued) o o o Compulsive gamblers can initiate placement of their name on a list of persons to whom extension of credit by the casino is prohibited Nevada Council on Problem Gambling maintains a helpline available 24/7 Congress created the National Gambling Impact and Policy Commission to conduct a study of the social and economic impact of gambling at all levels of society COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Criminal Activity at Casinos o o o Casino patron as crime victim Duty owed to intoxicated patrons who become crime victims Casino as crime victim COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

False Imprisonment o o o Person is restrained against his will without justification A facility believes a patron has engaged in criminal activity and wants to detain that person during investigation If an investigation reveals no crime, the facility may be liable for false imprisonment COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Casinos and the Dram Shop Act o o o Most casino offer guests free drinks while gambling Plaintiffs in several lawsuits were given free drinks after becoming intoxicated Incurred significant gambling debt on credit from casino COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Casinos and the Dram Shop Act (continued) o o Claimed debt constituted damages from illegal alcohol service Claimed they should be relieved from obligation to pay COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Casinos and the Dram Shop Act (continued) o o o Dram Shop Act does not apply to a gambler who is served alcohol by casino after becoming visibly intoxicated Continues to place bets and incurs gambling debt Not entitled to relief from loss COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Riverboat Casinos and the Jones Act o o In some states, a riverboat located dockside but totally in a body of water can legally house gaming In other states, the boat must travel a certain distance off shore before it can validly permit gambling COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Riverboat Casinos and the Jones Act (continued) o o Maritime laws—affect events occurring on boats on waterways of the United States Litigation to determine which laws apply to riverboat casinos COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

The Jones Act o o o Federal maritime law Enables employees injured while on a boat to sue in court for full value of injury, including pain and suffering What constitutes a “vessel in navigation” has been the subject of several cases COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Casinos on Native American Reservations o o o Many casinos have been built on reservations Laws of the state in which the reservation is located may outlaw gambling The reservation’s governing body may determine that gambling will be permitted on the reservation COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Sovereign Authority o o o Tribes are separate from federal and state governments Have power to regulate their internal affairs by making their own law Power to enforce law rests with tribal courts, not federal courts COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Sovereign Authority o o (continued) Tribal sovereignty is subordinate only to the federal government Tribes are immune from lawsuits unless they specifically waive that immunity COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Lawsuits against Native American Tribes o Indian Gaming Regulatory Act (IGRA) o Passed by Congress in 1988 o To some extent restricts a tribe’s authority to conduct gambling activities COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Lawsuits against Native American Tribes o (continued) IGRA’s goal was to balance states’ interest in regulating high-stakes gambling within their borders and Native Americans’ resistance to state intrusions on their sovereignty COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Lawsuits against Casino Employees o o Native American tribes will transfer management of casinos to corporate entity separate from tribe Entities are normally named as the defendant when a casino patron is injured and sues COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Dram Shop Act o o o Tribal immunity bars lawsuits for wrongful sale of alcohol at Native American casinos Claims based on dram shop liability will be referred to tribal courts Excludes state or federal courts COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act o o o Federal government maintains some oversight of gaming conducted on reservations Authority embodied in IGRA Provides comprehensive design for regulating gaming activities on reservations COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act (continued) o Class most highly regulated is Class III o Includes: n n n n Blackjack Craps and related dice games Wheel games Roulette Electronic games of chance Slot machines Card games played against the house Keno COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act o (continued) IGRA mandates four requirements: n n Gaming must be authorized by an ordinance or resolution adopted by the governing body of the tribe with jurisdiction of the land Type of gaming involved must be permitted by the state for some purpose by some person/organization COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act o (continued) IGRA mandates four requirements: (continued) n n Gaming must be approved by the chairperson of the National Indian Gaming Commission Gaming must be conducted consistent with Tribal-State treaty entered into by tribe and state COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act o (continued) Compacts n n Written agreements between the state and the individual tribe Govern the operation of casino games on Native American lands COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Indian Gaming Regulatory Act o o o (continued) Where tribes undertake gaming operations without these prerequisites, the federal government is authorized to obtain search warrants and seize gambling devices from casinos Managers and operators are subject to federal prosecution for violation The U. S. government can seek injunctive relief against the casino to prevent it from operating COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Internet Gambling o Since 1995, online gambling has exploded in popularity o Online casinos feature nearly every game available in brick-and-mortar casinos o Funds for betting are deposited by several means o Once an account is open, the user is able to place bets COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Internet Gambling o o o (continued) Land-based casinos in the United States are heavily regulated Online casinos based outside of the United States are not subject to any of these regulations Additional developments on the legality and regulation of online gambling are anticipated in near future COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Crowd Control o o o Parks attract large numbers of people on a daily basis Crowd control requires reasonable care by the park All would-be visitors are entitled to admission upon payment of the fee COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Crowd Control o The park is not required to tolerate customers who: n n n o (continued) Damage property Injure others Otherwise disrupt activities The park can establish reasonable rules of conduct to ensure that visitors are not exposed to risk of injury by others COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Assumption of Risk o o o Rule of assumption of risk may apply Activity participant impliedly consents to appreciated risks associated with the venture A person injured from usual and expected risks is not entitled to compensation COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Minimum Height Rules o o o For safety reasons, many rides have minimum height rules Operators should anticipate some disagreements with customers Parks should develop reasonable rules for security personnel when denying access to a ride due to height COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Ride Safety— Governmental Regulations o o Require all rides to be in safe condition and conformance with operation and maintenance standards at all times All aspects of a ride’s operation are implicated n n Setup Integrity of structure Inspection schedule Electrical mechanisms and hookup COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Ride Safety— Governmental Regulations o o (continued) Violations can result in serious injury, even death, to riders Some state laws provide that any violation that results in death constitutes manslaughter (recklessly causing a person’s death) COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Ride Safety— Governmental Regulations o o (continued) Serious felony—can result in long prison term Care in all aspects of ride maintenance is imperative COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Ride Safety—Negligence o o o Freakish accidents can happen if attention to safety is lax The park should establish procedures requiring mechanics to ensure that all employees are clear from dangerous locations before testing rides Provide appropriate training on the safe testing of rides COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Fences o o o Some act as barriers to protect passersby Some are for demarcation of the area where riders can gather prior to boarding Fences need to be properly installed and maintained COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Admission Discounts o o o Parks occasionally offer promotional rates to residents of the area immediately surrounding the park Purpose is to encourage attendance during slow periods Allowable provided that higher fees are not charged to people within a protected class COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Season Passes o o o Allows holder free admission and possibly access to amusements during specified months Include “Terms and Conditions” that form part of the contract between park and pass holder The park should accurately state rights and restrictions associated with the pass COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Hotel Spas o o Increasingly being offered in upscale hotels Offer a variety of services to promote relaxation, relieve stress, enhance physical appearance COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Hotel Spas o (continued) Services offered include: n n n n Massage Facials Body wraps Body scrubs Aromatherapy Manicures and pedicures Makeup lessons and application Exfoliation Cellulite reduction treatment Therapeutic baths Hydrotherapy Kurs Salon services COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Hotel Spas o o (continued) Various aspects of operating a spa can result in liability if reasonable care is overlooked by management Matters of concern are: n n n Licensing Sanitation Wet floors Stolen property in lockers Conduct of service providers COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Licensing o o o Evidences authorization from the state for licensee to offer specified services In most states, the spa itself must be licensed Many services offered require that the service provider be licensed COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Licensing o o (continued) Providing service without a license is illegal Potential penalties for spa and hotel include: n n Fines Negative publicity COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Licensing o o (continued) For a person who administers service without a license, the penalty may be jail Part of the hiring process should include verification of necessary licenses COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Sanitation and Nails o Most spas offer manicures and pedicures o The spa should ensure that tables are scrubbed o Tools should be sterilized after each use o o Emery boards and toe spreaders should be used on one customer only Manicurist/pedicurist must wash hands between clients COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Wet and Slippery Floors o o o Spas often include shower facilities, hot tubs, and/or a pool Wet floors are slippery and may cause patrons to fall To avoid foot fungus, the spa should provide disposable spa slippers, flip-flops, and shower shoes so that customers are not in bare feet COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Effect of Liability Waiver o Spas often require customers to sign a waiver of liability n o Document stating that the customer waives the right to sue spa/hotel if injured while at facility Law does not like to release a party from liability for wrongdoing COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Effect of Liability Waiver o o (continued) If both parties agree and terms are clear and unambiguous, many courts will enforce them To be enforceable, the activity that caused injury must be recognizable by the injured party as potentially dangerous COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Property Stolen from Lockers o o o Spa patrons usually change clothes prior to treatment or using facilities The spa customarily provides a locker for the guest’s use Often a lock is also provided by the spa COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.

Massages o Administering a massage necessarily involves close personal contact o Often a customer is minimally clothed and/or draped only in a towel o Can lead to claims of sexual abuse or rape o Spa management should perform criminal background checks and verify credentials on all workers COPYRIGHT © 2008 by Delmar Learning. ALL RIGHTS RESERVED.