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Utah

  1. Definition of Gambling

    1. The Utah Code defines gambling as:

      The "risking of anything of value for a return or risking anything of value upon the outcome of a contest, game, gaming scheme, or gaming device when the return or outcome is based upon an element of chance. . ." Utah Code Ann. § 76-10-1101 (2006). There must also be an understanding that as a result of a certain outcome of the event someone will receive something of value. Id.

    2. Utah’s definition of gambling specifically includes:

      1. A lottery, and further defines a lottery as a scheme for the "distribution of property by chance among persons who paid or promised to pay any valuable consideration for the chance of obtaining property." Id.

      2. In Albertson’s Inc. v. Hansen, the Utah Supreme Court held that the issuance of bingo cards to participants upon request was not sufficient to show valuable consideration, a necessary element of an illegal lottery. 600 P.2d 982 (Utah 1979). In Albertson’s, Inc. bingo cards were distributed for free with no purchase necessary to obtain a card. Id. Since the profits accumulated from the bingo card game were not derived from participants, there was no valuable consideration present. Id.

      3. The Utah code recognizes a gambling scheme of this nature as illegal regardless of its label as a gift enterprise, raffle, lottery or any other name. Utah Code Ann. § 76-10-1101 (2006).

      4. Gambling, under the Utah Code does not include lawful business transactions or the operation of an amusement device that only provides an immediate right of replay that is not exchangeable for anything of value. Id.

    3. Utah’s constitution provides that the "Legislature shall not authorize any game of chance, lottery or gift enterprise under any pretense or for any purpose." Utah Const. art. VI, § 27.

    4. Utah provides the power to its boards of commissions and city councils of cities to suppress and prohibit "gambling houses and gambling, lotteries and all fraudulent devices and practices, and all kinds of gaming, playing at dice or cards, and other games of chance . . ." Utah Code Ann. § 10-8-41 (2006). A Salt Lake City ordinance prohibiting the maintenance or keeping of slot machines was upheld as a lawful exercise of the city’s authority pursuant to this section of the Utah code. Salt Lake City v. Doran, 131 P. 636 (Utah 1913).

  2. Definition of Bookmaking

    Municipalities in the state of Utah have the authority to establish ordinances governing and controlling bookmaking and pool selling activities. See Bately v. Ritchie, 273 P. 969 (Utah 1928) (city ordinance made the act of engaging bookmaking and pool selling a criminal act).

  3. Specific Gaming Device Definitions
    1. Gaming device

      A gambling device is broadly defined by Utah’s code as "anything specifically designed for use in gambling or use primarily for gambling." Utah Code Ann. § 76-10-1101 (2006).

    2. Video gaming device

      Utah’s criminal code also provides a definition for video gaming devices. A video gaming device must possess all of the following characteristics:

      1. The device must have a video display and computer mechanism for play of the game;

      2. Length of a single game is not substantially affected by skill or knowledge of the player;

      3. There must be a tracking mechanism in the device recording tokens or money accumulated or remaining;

      4. The device must have a play option permitting the player to risk varying amounts of money or tokens in a single game, whereby the risking of a greater amount:
        1. Does not significantly extend the length of a single game; and
        2. Provides for a chance of larger return of credits, money or tokens; and

      5. The device requires insertion of money or tokens in order to operate. Utah Code Ann. § 76-10-1101 (2006).

  4. Bucket Shop Laws

    Utah does not have any statutory law governing bucket shops.

    In Overholt v. Burbridge, wagering was conducted by a bucket shop, an establishment "kept for the exclusive purpose of wagering and gambling in the future price of the stock of corporations, and the future price of other commodities." 79 P. 561 (Utah 1905). Although the actual legality of the conduct of a bucket shop was not at issue in this case, the court did hold that the agreement, arising out of bucket shop activities, was not a valid enforceable contract because it was a form of gambling prohibited by the state. Id. Although Utah does not have laws governing bucket shops, case law indicates that contracts arising out of bucket shop activities will not be enforced by a court of law.

  5. Prohibition of Games of Skill

    An Attorney’s general opinion made the following statement regarding games of skill:

    6. [G]ames of cards do not cease to be games of chance because they call for the exercise of skill by the players, nor do games of billiards cease to be games of skill because at times, especially in the case of tyros, their result is determined by some unforeseen accident, usually called "luck." The test of the character of the game is not whether it contains an element of chance or an element of skill, but which of these is the dominating element that determines the result of the game. 1982 Utah AG LEXIS 53 (quoting D’Orio v. Startup Candy Co., 266 P. 1037, 1039 (Utah 1928)).

  6. Express Exemptions

    Wagering on Horse Races:

    Chapter 38 of Title 4 of the Utah Code creates the Utah Horse Regulation Act. See 4-38-1 et seq. This chapter governs the regulation and conduct of horse racing in the state of Utah. However, the act expressly provides that nothing in the "chapter may be construed to legalize or permit any form of gambling." Utah Code Ann. § 4-38-15 (2006). Therefore, although Utah does permit horse racing it still maintains a strict prohibition on any form of gambling include wagering on the outcome of a horse racing event.

  7. Specific Internet Prohibition

    8. Utah does not have any statutory or case law governing internet gambling activity.

  8. Statute of Anne/Recovery of Debts

    In Collet v. Beutler, the court stated that a gambler should not have the aid of the courts in enforcing a claim arising out of a gambling transaction. 76 P. 707 (Utah 1904). Overholt v. Burbridge, bolsters the concept set forth in Collet, by stating: "[i]t is a well-settled rule that courts will not lend their aid, and enforce contracts which are illegal, or the performance of which is against public policy. 79 P. 561, 563 (Utah 1905). Therefore, any suit to enforce an illegal contract will not be upheld by a Utah court.

  9. Gaming Crimes and Penalties

    1. Gambling

      A person may be found guilty of gambling by participation in gambling; knowingly permitting the conduct of gambling on premises under his control; or knowingly permitting the use of a video gaming device in a business establishment that may be accessed by any person present in the establishment. Utah Code Ann. § 76-10-1102 (2006). Gambling is a class B misdemeanor. Id. However, if a person is convicted of gambling pursuant to this section more then once, then the person is guilty of a class A misdemeanor. Id.

    2. Gambling Fraud

      A person convicted of gambling fraud is punished as though guilty of theft or property of like value. Utah Code Ann. § 76-10-1103 (2006). Gambling fraud occurs when a person participates in gambling with the knowledge that he has a lesser risk of losing or greater chance of winning over the other participants and that risk is not known to the other participants. Id.

    3. Gambling Promotion

      Promotion of gambling is a class B misdemeanor. Utah Code Ann. § 76-10-1104 (2006). However, if a person is convicted pursuant to this section two or more times, then the charge is felony in the third degree. Id. A person is guilty of gambling promotion by inducing or aiding another to engage in gambling whereby the person intends to derive economic benefit from the induced. Id. Promotion of gambling is also present when a person knowingly invests, finance, controls or participates in any gambling with the intent to derive economic benefit other then personal winnings. Id.

    4. Advertisement or solicitation for participation in lotteries – Void in Utah

      Distribution or dissemination of advertisements, written, or printed materials containing solicitation for participation in any lottery is unlawful unless the advertisement conspicuously contains the words "Void in Utah." Utah Code Ann. § 76-10-1104.5 (2006). The conspicuously printed element requires that the terms "Void in Utah" be in larger or bolder font then the surrounding material so that is it clear to any individual viewing the advertisement. Id. A person convicted of unlawful distribution of advertisements shall be fined $2,500. Id. "A person who is twice or more convicted under this section shall be fined the sum of $10,000." Id.

    5. Possession of a Gambling Device or Record

      Possession of a gambling device or record is punishable as a class B misdemeanor. Utah Code Ann. § 76-10-1105 (2006). Two convictions of possession of a gambling device or record are punishable as a class A misdemeanor. Id. However, three or more convictions under this section results in the charge of a felony of the third degree. Id. A person is guilty of possession of a gambling device or record when he knowingly possesses the device or record with the intent to use it in gambling. Id.

    6. Confidence game

      "Any person who obtains or attempts to obtain from any other person any money or property by any means, instrument or device commonly called a confidence game shall be punished as in the case of theft of property of like value." Utah Code Ann. § 76-10-1109 (2006).