Amusement Sales, Inc.v.State Of Georgia
Amusement Sales leased eight electronic game machines to a Georgia convenience store. The State alleged that the store paid customers cash winnings, making the machines gambling devices and the store a gambling place under Georgia’s RICO Act, and sought in rem forfeiture of the machines and money. A jury ruled for the State. The Georgia Court of Appeals held that the evidence supported the forfeiture claim: the machines operated by chance, generated substantial cash profits, and were used in a business where cash payouts occurred daily. The owner also failed to establish the innocent-party defense because the profit and recordkeeping evidence permitted a finding of constructive knowledge. The court nevertheless reversed and remanded for a new trial because the private special assistant district attorneys prosecuting the forfeiture action were paid a percentage of forfeited proceeds. That contingency arrangement gave them a personal financial stake in the outcome and violated Georgia public policy; because forfeiture is quasi-criminal and permanently extinguishes property rights, the owner did not need to show prejudice from the conflict. The court further directed that the retrial jury receive the RICO-specific innocent-party and burden-shifting instruction rather than language borrowed from the drug-forfeiture statute.
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