STRAUB, Circuit Judge:
The United States appeals from an August 21, 2012 order of the United States District Court for the Eastern District of New York (Jack B. Weinstein, Judge) entering a post-verdict judgment of acquittal in favor of Defendant-Appellee Lawrence DiCristina, setting aside the guilty verdict on one count of violating the Illegal Gambling Business Act (the "IGBA"), 18 U.S.C. § 1955, and one count of conspiring to do so under 18 U.S.C. § 371. The District Court ruled that DiCristina's conviction must be set aside because "Texas Hold'em" poker was not covered by the IGBA. United States v. Dicristina, 886 F.Supp.2d 164 (E.D.N.Y.2012). Because we find that the plain language of the IGBA covers DiCristina's poker business, we
The basic facts of this case are not in dispute: between December 2010 and May 2011, DiCristina, along with his co-defendant Stefano Lombardo and others, operated a poker club in the back room of a warehouse in Staten Island, New York, out of which he conducted a legitimate business selling electric bicycles. Dicristina, 886 F.Supp.2d at 198. The poker games,
On June 29, 2012, DiCristina moved to dismiss the second superseding indictment on the basis that poker is not house-banked
The jury found DiCristina guilty on both counts charged in the second superseding indictment. DiCristina then renewed his motion to dismiss in the form of a motion for a judgment of acquittal under Federal Rule of Criminal Procedure 29. He argued that (1) in order for conduct to come under the purview of the IGBA, it must be sufficiently similar to the nine games enumerated in § 1955(b)(2); and (2) poker did not fall within the statutory definition of an illegal gambling business because it was neither house-banked nor predominated by chance. Dicristina, 886 F.Supp.2d at 169. The Government argued that subsection (b)(2) did not, by its plain language, restrict the games that constitute unlawful gambling under the IGBA and therefore it was sufficient for purposes of the statute that a gambling activity was illegal under
The District Court determined that both the Government and DiCristina presented plausible readings of the statute, and that the legislative history was not decisive as to whether Congress meant to include poker within the IGBA. Reasoning that the IGBA did not "provide explicit criteria" for defining gambling, and that there were "ambiguities in the federal definition of gambling," the District Court found that the "governing criteria must be derived by determining what common characteristics unif[y] the games listed in § 1955[ (b)(2) ] into a cohesive group." Id. at 226. The District Court found that "dictionary, common law, and other federal definitions of gambling argue in favor of a definition limited to games of chance." Id. at 230. It then determined that poker did not constitute "gambling" under the IGBA because poker is predominated by skill rather than chance. Id. at 234. This timely appeal followed.
We review a district court's legal conclusions, including those interpreting the meaning of a statute, de novo. United States v. Stewart, 590 F.3d 93, 109 (2d Cir.2009); United States v. Koh, 199 F.3d 632, 636 (2d Cir.1999).
When interpreting a statute, we "must begin with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose." United States v. Kozeny, 541 F.3d 166, 171 (2d Cir.2008) (interpreting 18 U.S.C. § 3292) (quoting United States v. Albertini, 472 U.S. 675, 680, 105 S.Ct. 2897, 86 L.Ed.2d 536 (1985)) (internal quotation marks omitted). "Where the statute's language is `plain, the sole function of the courts is to enforce it according to its terms.'" Id. (quoting United States v. Ron Pair Enters., Inc., 489 U.S. 235, 241, 109 S.Ct. 1026, 103 L.Ed.2d 290 (1989)); see also Conn. Nat'l Bank v. Germain, 503 U.S. 249, 253-54, 112 S.Ct. 1146, 117 L.Ed.2d 391 (1992) ("We have stated time and again that courts must presume that a legislature says in a statute what it means and means in a statute what it says there.").
Statutory enactments should, moreover, be read so as "to give effect, if possible, to every clause and word of a statute." Duncan v. Walker, 533 U.S. 167, 174, 121 S.Ct. 2120, 150 L.Ed.2d 251 (2001) (quoting United States v. Menasche, 348 U.S. 528, 538-39, 75 S.Ct. 513, 99 L.Ed. 615 (1955)) (internal quotation marks omitted); see also United States v. Nordic Vill., Inc., 503 U.S. 30, 36, 112 S.Ct. 1011, 117 L.Ed.2d 181 (1992) (noting "the settled rule that a statute must, if possible, be construed in such fashion that every word has some operative effect"); United States v. Anderson, 15 F.3d 278, 283 (2d Cir.1994) ("[C]ourts will avoid statutory interpretations that render provisions superfluous."). And "[t]he `whole act' rule of statutory construction exhorts us to read a section of a statute not `in isolation from the context of the whole Act' but to `look to the provisions of the whole law, and to its object and policy.'" United States v. Pacheco, 225 F.3d 148, 154 (2d Cir.2000) (quoting Richards v. United States, 369 U.S. 1, 11, 82 S.Ct. 585, 7 L.Ed.2d 492 (1962)).
In the event that the text of a statute is not clear, a court interpreting the statute may consult the legislative history to discern "the legislative purpose as
Finally, we have recognized that "[t]he rule of lenity provides that ambiguities concerning legislative intent in criminal statutes should be resolved in favor of the accused." United States v. Figueroa, 165 F.3d 111, 119 (2d Cir.1998). The rule of lenity "ensures fair warning by so resolving ambiguity in a criminal statute as to apply it only to conduct clearly covered." United States v. Lanier, 520 U.S. 259, 266, 117 S.Ct. 1219, 137 L.Ed.2d 432 (1997). However, "the rule of lenity only applies if, after considering text, structure, history, and purpose, there remains a grievous ambiguity or uncertainty in the statute, such that the Court must simply guess as to what Congress intended." Barber v. Thomas, 560 U.S. 474, 130 S.Ct. 2499, 2508-09, 177 L.Ed.2d 1 (2010) (internal citations and quotation marks omitted); see also Bifulco v. United States, 447 U.S. 381, 387, 100 S.Ct. 2247, 65 L.Ed.2d 205 (1980) ("[T]he touchstone of the rule of lenity is statutory ambiguity." (internal quotation marks omitted)).
The IGBA provides in relevant part:
18 U.S.C. § 1955 (emphasis added).
Subsection (e) of the IGBA excludes from the statute's scope "any bingo game, lottery, or similar game of chance conducted by" a tax-exempt organization. Id. § 1955(e) (emphasis added).
Pursuant to § 1955(b)(1)(i), we look to state law definitions of gambling. New York law provides that:
N.Y. Penal Law § 225.00(2).
A "contest of chance" is in turn defined under New York law as "any contest, game, gaming scheme or gaming device in which the outcome depends in a material degree upon an element of chance, notwithstanding that skill of the contestants may also be a factor therein." Id. § 225.00(1). The parties do not dispute that poker constitutes gambling under New York State law. See Dicristina, 886 F.Supp.2d at 168-69 (noting that DiCristina had waived the argument that poker was not gambling under New York law and explaining that it has no merit).
The Supreme Court has observed that the IGBA "declar[es] that certain gambling activities violate federal as well as state law," thereby "giv[ing] the Federal Government a new substantive weapon" with which to "strike at organized crime's principal source of revenue: illegal gambling." Iannelli v. United States, 420 U.S. 770, 788, 95 S.Ct. 1284, 43 L.Ed.2d 616 (1975). In Sanabria v. United States, 437 U.S. 54, 98 S.Ct. 2170, 57 L.Ed.2d 43 (1978), the Court noted that:
Id. at 70, 98 S.Ct. 2170 (internal citations and footnotes omitted).
The plain language of § 1955 clearly outlines the activity that it proscribes.
DiCristina contends that the IGBA does not apply to a poker business, however, because poker does not fit within the "definition of gambling" set forth in subsection (b)(2).
DiCristina contends that reading the statute in this way renders subsection (b)(2) purposeless. See Appellee's Br. at 24-29. We disagree. Subsection (b)(2) lists acts of running a gambling business — "poolselling," "bookmaking," "maintaining" gambling devices, and "conducting" games — rather than the games themselves. 18 U.S.C. § 1955(b)(2). It thus serves as an illustration of what may constitute running a gambling operation. As the District Court recognized, this reading of subsection (b)(2) supports the notion that Congress was "concerned with illustrating types of gambling businesses ... rather than on creating a limiting definition of gambling under federal law." DiCristina, 886 F.Supp.2d at 222.
DiCristina also argues that § 1955(e) "confirms that the unifying characteristic of the prohibited games is that each is a game of chance," Appellee's Br. at 17, because the games that are included by the language of subsection (b)(2) must be the same as those games that are excluded by subsection (e). Subsection (e), it is undisputed, creates an exemption for the activities of charities. It does not make any reference to subsection (b)(2), and does not state that it modifies or applies to that subsection in any way. Had Congress intended to limit the reach of the IGBA to businesses operating games of chance, it could have done so by inserting that language in subsection (b)(2). The District Court's decision to limit the IGBA to games of chance was based on its finding that the statute was ambiguous as to what gambling activities it covered. See DiCristina, 886 F.Supp.2d at 230. Because we find no such ambiguity, we decline to limit the statute's reach beyond its plain terms.
Thus, the question of whether skill or chance predominates in poker is inapposite to this appeal.
Our precedent is consistent with this holding. In United States v. Gotti, 459 F.3d 296 (2d Cir.2006), we ruled of § 1955:
Id. at 340 (emphasis in original).
In Gotti, defendant Bondi was convicted of two counts of violating the IGBA — one for running a bookmaking business, and one for maintaining an electronic machine poker game called Joker-Poker. He challenged his conviction of the latter count on the grounds that Joker-Poker machines were not "illegal gambling devices" under New York State law because the games played thereon were "games of skill rather than contests of chance." Id. at 342. We rejected this argument, finding that under New York law a "contest of chance" encompasses games in which the skill of the contestants may play a role, so long as the outcome depends in a material degree on chance. Id.
While the parties in Gotti did not raise the argument now made by DiCristina, we specifically ruled in that case that an "illegal gambling business" is "defined as one which" met the three elements articulated in subsection (b)(1). Id. at 340.
As the District Court acknowledged, the only Circuit court to have directly addressed this issue is the Third Circuit in United States v. Atiyeh, 402 F.3d 354 (3d Cir.2005). In Atiyeh, the Third Circuit rejected the argument DiCristina now advances, stating:
402 F.3d at 372 (footnote omitted). Thus, the Third Circuit has arrived at an understanding of the IGBA similar to the one we reach today.
Indeed, federal courts have repeatedly applied the IGBA to businesses operating games — including poker — that are not enumerated therein, without reading the statute to contain a definition in subsection (b)(2). See United States v. Useni, 516 F.3d 634, 656-57 (7th Cir.2008) (applying IGBA to bingo hall); Gotti, 459 F.3d at 341 (same as to business operating video game Joker Poker); United States v. Pack, 16 F.3d 1222, 1994 WL 19945, at *2-3 (6th Cir. Jan. 25, 1994) (unpublished opinion) (same as to multi-faceted gambling business that included poker); United States v. Trupiano, 11 F.3d 769, 771-72 (8th Cir. 1993) (same as to gin rummy business); United States v. Rieger, 942 F.2d 230, 233 (3d Cir.1991) (same as to poker business); United States v. Zannino, 895 F.2d 1, 4-5 (1st Cir.1990) (same); United States v. Angiulo, 897 F.2d 1169, 1200-01 (1st Cir. 1990) (same); United States v. Reitano, 862 F.2d 982, 984 (2d Cir.1988) (same as to blackjack business); United States v. Shursen, 649 F.2d 1250, 1257 (8th Cir. 1981) (same); United States v. Dadanian, 818 F.2d 1443, 1447-49 (9th Cir.1987) (same as to poker club), rev'd on reh'g on other grounds, 856 F.2d 1391 (1988); United States v. Tarter, 522 F.2d 520, 524, 527 (6th Cir.1975) (rejecting argument that IGBA did not cover defendant's small scale back-room poker business, which consisted of "seven card stud with a fifty cent opener and a two to four dollar limit on raises"); United States v. Dey, No. 07-cr-725, 2009 WL 1730956, at *1 (E.D.N.Y. June 18, 2009) (poker business); United States v. Hsieh, Cr. No. 11-00081, 2013 WL 1499520, at *4-6, *7 (D.Guam.Apr. 12, 2013) (same).
In sum, courts have overwhelmingly read the IGBA to have only three elements: (1) the gambling business violates the law of the state in which the business is conducted; (2) the business involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and (3) the business has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day. See, e.g., United States v. Truesdale, 152 F.3d 443, 446 (5th Cir.1998) ("Under section 1955, an illegal gambling business is defined as a gambling business that: (1) violates state or local law, (2) involves 5 or more people, and (3) is in continuous operation for more than 30 days or has gross revenue of $2,000 in any single day."); United States v. Cyprian, 23 F.3d 1189, 1199 n. 14 (7th Cir.1994) (same); United States v. Sacco, 491 F.2d 995, 998 (9th Cir.1974) (en banc) (same). We agree, and today hold that an "illegal gambling business" is one which meets the three elements articulated in subsection (b)(1).
Based on the clear text of the IGBA, we could conclude without an examination of Congress's intention in drafting it. Indeed, we look to the legislative history of a statute only where the text itself is not "absolutely clear." Disabled in Action
The legislative history is remarkably clear that the passage of this statute was driven by the desire to crack down on organized crime. As the District Court noted, "[t]he debates focused not on prohibiting particular kinds of gambling, but on targeting particular kinds of criminals — i.e., reaching `those who are engaged in an illicit gambling business of major proportions.'" Dicristina, 886 F.Supp.2d at 204 (quoting S.Rep. No. 91-617, at 73 (1969); H.R.Rep. No. 91-1549, at 53 (1970), 1970 U.S.C.C.A.N. 4007).
There was some discussion during the legislative debates of which games organized crime was using toward this end. Various legislators noted the fact that organized crime was involved in "lotteries, dice games, and illegal casinos" in addition to "horse racing and sporting events." 116 Cong. Rec. 590 (Jan. 21, 1970) (statement of Sen. McClellan). "Mafia-run numbers rackets," Dicristina, 886 F.Supp.2d at 208, were discussed, as was bookmaking, which many were concerned allowed national crime syndicates to finance their activities, see id. at 208-09 (legislative history reflects concern about money made in bookmaking). As the District Court acknowledged, there is nothing in the legislative history suggesting that whether a game was predominated by chance was relevant to whether a business operating that game constituted an illegal gambling business under the IGBA. See Dicristina, 886 F.Supp.2d at 206.
Although poker was not discussed at length, the dialogue about poker that did occur suggests Congress anticipated that poker would be included within the reach of the IGBA as it was ultimately enacted.
116 Cong. Rec. 35204-05 (Oct. 6, 1970).
The concern that the IGBA would criminalize non-commercial private poker games was assuaged by comments mentioning the requirements currently set forth under § 1955(b)(1), and not by comments indicating that poker is a game of skill.
Id. at 35205.
Thus, to the extent that poker was discussed, there was some acknowledgment that some businesses operating poker games would fall within the IGBA, but that the other requirements of the statute would exclude the typical friendly game of poker from the statute's reach.
DiCristina argues that the rule of lenity requires us to construe any ambiguity in the IGBA in his favor. See Appellee's Br. at 49. "[T]he rule of lenity only applies if, after considering text, structure, history, and purpose, there remains a grievous ambiguity or uncertainty in the statute." Barber, 130 S.Ct. at 2508 (internal quotation marks omitted); see also United States v. Venturella, 391 F.3d 120, 133 (2d Cir.2004) (noting that this Court applies the rule of lenity as a "last resort"). A statute is not "`ambiguous' for purposes of lenity merely because it [i]s possible to articulate a construction more narrow than that urged by the Government." Moskal v. United States, 498 U.S. 103, 108, 111 S.Ct. 461, 112 L.Ed.2d 449 (1990) (emphasis
Lastly, DiCristina argues that his acquittal nonetheless must stand because the District Court improperly refused to submit to the jury the question of whether poker constitutes gambling for purposes of the IGBA. See Appellee's Br. at 52. This argument is without merit.
While a defendant has the right to have a jury decide whether the prosecution has proved the elements of the charged crime, United States v. Gaudin, 515 U.S. 506, 522-23, 115 S.Ct. 2310, 132 L.Ed.2d 444 (1995), the district judge must resolve questions of law, id. at 513, 115 S.Ct. 2310. DiCristina argues that whether poker constitutes gambling under the IGBA is a mixed question of fact and law. See id. at 512, 115 S.Ct. 2310 (recognizing that mixed questions of law and fact have typically been resolved by juries.). As is clear from our above discussion, whether poker constitutes gambling under the IGBA is purely a question of statutory interpretation, and therefore raises only a question of law. See Dunlop Tire & Rubber Corp. v. Interstate Commerce Comm'n, 724 F.2d 349, 350 (2d Cir.1983) (per curiam) (indicating statutory interpretation presents a question of law).
The cases upon which DiCristina relies are not to the contrary. In United States v. Banki, 685 F.3d 99 (2d Cir.2011), we found error in a jury instruction that a "hawala" — an intermediary for distributing funds — was a "money transmitting business" within the meaning of 18 U.S.C. § 1960. Id. at 114. However, in that case, the parties agreed that "transferring funds through a hawala qualifies as `money transmitting' under § 1960." Id. at 113. Because the court had instructed the jury that a hawala was "an unlicensed value transfer system, through which money was sent to Iran," we held that the jury instruction had improperly "relieved the government of its burden of proving [the defendant's] knowledge that money was moving to Iran extended beyond [a single transaction]." Id. at 114 (emphasis in original). We did not hold that the jury should have decided whether a hawala was a money transmitting business within the meaning of the statute. Banki therefore does not help DiCristina, who argues that the jury should have decided whether or not poker was gambling, not that the District Court prevented the jury from deciding a crucial element of the charged offense (e.g., whether he was intentionally running a No Limit Texas Hold'em game).
DiCristina's citation to Ling Nan Zheng v. Liberty Apparel Co., 617 F.3d 182 (2d Cir.2010), is similarly unavailing. In that case we affirmed the district court's decision to allow the jury to determine whether the defendant was the plaintiff's "joint employer" within the meaning of the Fair Labor Standards Act. Id. at 186. We held that the determination was a mixed question of law and fact properly given to the jury. Id. at 185-86. Unlike the element at issue in Liberty Apparel, whether poker constitutes gambling for purposes of the IGBA is a pure question of statutory interpretation and thus a question of law, which does not depend on the particular facts of any one case.
Because we find that the plain language of the IGBA includes DiCristina's poker business, we
Moreover, because we find that subsection (b)(2) is not definitional, we do not need to decide whether poker — or any other type of gambling — is sufficiently like the enumerated games to fall within the IGBA. Rather, the gambling activity must only be prohibited by state law and meet the additional criteria set forth in the IGBA.
DiCristina contended for the first time at oral argument that we are constrained by the Government's "concession" that subsection (b)(2) contains a definition of the word "gambling." The Government has not conceded this point, see Appellant's Br. at 13 ("the IGBA does not contain a definition of `gambling'"), id. at 16 (arguing that subsection (b)(2) does not define gambling for purposes of the IGBA), but, even if it had, we are obligated to determine the meaning of the statute as it was written by Congress, not as argued by the Government in this case.