Uston v. Resorts International Hotel, Inc.
445 A.2d 370 (1982), 89 N.J. 163 (1982)
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Rule of Law:
The New Jersey Casino Control Act grants the Casino Control Commission exclusive authority to regulate casino games, which preempts a casino's common law right to exclude patrons based on their playing strategy. Separately, the common law right of exclusion for properties open to the public is limited by a duty not to act in an arbitrary or unreasonable manner.
Facts:
- Kenneth Uston was a renowned practitioner of card counting, a strategy for playing blackjack that increases a player's chances of winning.
- On January 5, 1979, the Casino Control Commission implemented a new rule regarding the reshuffling of cards that made card counting more advantageous to players.
- Resorts International Hotel, Inc. (Resorts) sought the Commission's position on excluding card counters, and the Chairman indicated no rule prohibited it.
- On January 30, 1979, Resorts excluded Uston from its blackjack tables on the basis that he was a professional card counter.
- Uston's method of playing blackjack, including his card-counting strategy, did not violate any of the Commission's existing rules for the game.
Procedural Posture:
- Resorts International Hotel, Inc. excluded Kenneth Uston from its casino.
- The Casino Control Commission, on review, upheld Resorts' decision to exclude Uston.
- Uston appealed the Commission's final decision to the Appellate Division of the New Jersey Superior Court.
- The Appellate Division reversed the Commission's ruling, finding that Resorts did not have the authority to exclude Uston for card counting.
- Resorts International Hotel, Inc., as appellant, appealed the judgment of the Appellate Division to the Supreme Court of New Jersey.
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Issue:
Does the New Jersey Casino Control Act grant the Casino Control Commission exclusive authority to regulate the rules and conduct of casino games, thereby preempting a casino's common law right to exclude a patron for utilizing a skillful, rule-abiding playing strategy like card counting?
Opinions:
Majority - Pashman, J.
Yes, the Casino Control Act grants the Commission exclusive authority to regulate casino games, which preempts a casino's right to exclude a skilled player. The Act establishes an extraordinarily pervasive and intensive statutory and administrative control over casino operations. The Legislature gave the Commission sole power to define the rules of authorized games and the method of their operation. Because the Commission has promulgated exhaustive rules for blackjack and Uston played in accordance with them, Resorts has no authority to exclude him for successfully playing the game under those rules. The court also held that the common law right of proprietors to exclude patrons from places of public accommodation is not absolute; it is limited by a competing right of reasonable access, which prevents arbitrary or unreasonable exclusions. Uston's conduct was not disruptive or a threat to security, making his exclusion unreasonable.
Analysis:
This decision significantly curtailed the common law right of exclusion for owners of public accommodations in New Jersey, replacing an absolute right with a standard of reasonableness. It established that a highly regulated industry's governing statutes can preempt traditional common law rights, vesting regulatory power exclusively in the designated administrative body. This precedent solidifies the authority of regulatory agencies over the entities they oversee and ensures that patrons who abide by all official rules cannot be arbitrarily excluded for being too skillful, thereby promoting public confidence in the fairness of regulated activities like casino gaming.
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