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Associated Press, Published August 24 2010

North Dakota Supreme Court rejects racing company claim

BISMARCK – North Dakota’s Supreme Court has dismissed a company’s claim that the state illegally took its property and drove it out of business.

RSI Holdings Inc. and former owner Susan Bala once had a state license to handle pari-mutuel betting on horse races. They got into trouble when North Dakota’s Racing Commission claimed RSI didn’t pay state taxes on the wagers.

The company and Bala were convicted of federal charges for illegal gambling and money laundering. A federal appeals court threw out the convictions.

RSI and Bala then sued the state. They argued the state took RSI property and tried to make the company pay more than $6 million in taxes that it didn’t owe.

The Supreme Court said in an opinion released Monday that RSI’s case is not an illegal government taking of property.

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