The Betting Scandal at the Post-Intelligencer

A decision in the case of Philip Dawe vs. the Post-Intelligencer Publishing Company was rendered by Justice Lyon yesterday morning. This case, which grew out of a glove contest between Lynn and Dawe at Black Diamond some weeks ago, was rather peculiar. In arranging the contest, it was agreed that the stakes should be left at the office of the Post-Intelligencer until a decision by the referee was rendered. The paper initially objected, noting that no one on staff was familiar with boxing rules or interested in the affair, but ultimately accepted the money as a stakeholder, effectively acting as a bank.

The contest was awarded to Lynn on a foul. The Dawe party was dissatisfied and, when Lynn’s representatives demanded the stakes the following evening, Dawe’s representatives appeared to protest. They argued the contest was not fairly won. However, the Post-Intelligencer followed the original agreement and paid the Lynn party, having been assured that if Dawe sued for recovery, no loss would fall upon the newspaper.

Dawe subsequently filed suit before Justice Lyon. The claim was based on the ground that betting is illegal and that a party to a bet can recover money from a stakeholder at any time before the event—or even after, if the stakeholder was notified not to pay. The newspaper argued that the Dawe party’s protest was based only on the results of the contest, not on the fundamental illegality of the wager itself. Justice Lyon ruled in favor of the defendant, holding that the notice given to the stakeholder was not based on the illegality of the act, but rather on the outcome of the contest. The court added that had proper notice regarding the illegality been given, the plaintiff could have recovered the money. This decision will likely make betting less frequent in Washington Territory, or at least make stakeholders extremely cautious.