Recent Case Summary
Viva Las Vegas
In the last issue of NABTalk I reported the case of In re Jafari, where a Wisconsin Bankruptcy Court denied the claims of two Las Vegas casinos based on the unenforceability of gambling debts under Wisconsin law. Not surprisingly, the case was appealed. The District Court reversed the decision, finding the pertinent issue was in no way related to the morality of gambling or the wages of sin. Rather, the only question was which state law must be applied. The Debtor had signed an agreement that Nevada law would apply in order to obtain credit through markers issued by the casino. Additionally, all of the gambling took place in Nevada, not in Wisconsin. Therefore, the Court found that Nevada law applied, where gambling is indeed legal. Said another way, some things that happen in Vegas, such as debt incurred there, don’t stay in Vegas. Instead, they follow you wherever you go. In re Jafari, 378 B.R. 575 (Bkrtcy.W.D. Wis. 2007).