Wisconsin v. Gonnelly

Wisconsin charged Robert Michael Gonnelly (defendant) with check fraud. The state alleged that Gonnelly had cashed three checks at the Geneva Lakes Kennel Club (GLKC) for a total of $23,700, only for those checks to be returned for insufficient funds. Gonnelly moved to dismiss the action, arguing that the checks were gaming contracts that were void under Wisconsin’s statute of Queen Anne. It was stipulated that Gonnelly presented the checks to obtain money to place wagers on dog races at GLKC, and GLKC confirmed that it cashed the checks with knowledge that Gonnelly would use the funds for such wagers. The trial court granted Gonnelly’s motion, finding that the checks were void. The state appealed. The state argued that the checks themselves were not gaming contracts, and that the gaming contracts only arose once Gonnelly actually placed wagers on the dog races. The state further argued that it was immaterial that both parties understood that the funds would be used for gambling, because GLKC did not require that the funds be used for gambling as a condition for cashing them. The state additionally argued that the checks were negotiable instruments under Wisconsin law, meaning that Gonnelly’s promise to pay could not have been conditioned on any other promise. Moreover, the state argued that because Wisconsin had legalized certain forms of gambling, there was an implied repeal of the state’s statute of Queen Anne. Finally, the state argued that it would be unjust enrichment to not hold Gonnelly accountable for cashing the worthless checks.