State v. Granite Gate Resorts

Citation: State v. Granite Gate Resorts, Inc., 568 N.W.2d 715 (Minn. App. 1997), aff’d, 576 N.W.2d 747 (Minn. 1998).

Factual Background
The case was brought by Minnesota Attorney General Hubert H. Humphrey III to prevent Granite Gate Resorts, Inc., a Las Vegas-based gambling website, from soliciting business from Minnesota residents online. The State accused the defendant of false advertising, deceptive trade practices and consumer fraud arising from its operation of an Internet site that advertised sports betting and information services &mdash; illegal in Minnesota.

The defendant argued that the court lacked jurisdiction because it had not mailed anything into or advertised in Minnesota, or accepted a bet from a Minnesota resident.

Appellate Court Decision
The court said Granite Gate demonstrated a clear intent to solicit business from Minnesota residents, including one successful solicitation, and purposefully availed itself of the privilege of doing business in Minnesota, making jurisdiction reasonable and constitutional.