1999: HERE v State of California - Proposition 5

In June of 1999, the California Supreme Court ruled on the HERE v. Davis case. This was the successful challenge to Proposition 5, a statutory ballot measure that included banked or house banked games. The Supreme Court held that: A banking game is one in which any person or entity takes on all comers, paying all winners and collecting from all losers. Under the Supreme Court’s analysis the purposes of Penal Code Section 330’s prohibition against banking games, even though the house does not own the bank. Further the Supreme Court held that: Article 4 Section 19 (e) of the California Constitution elevated the Penal Code Section 330 to a constitutional level. Accordingly the Legislature may not authorize any game that would constitute casino gambling.

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