Greene County Democrat

Tag: Constitutional Amendment 743

  • Judge holds August 14th pre-trial conference on State of Alabama vs electronic bingo operators; next hearing set for November 2nd

    Special to the Democrat by John Zippert, Co-Publisher

    Retired Circuit Judge Arthur J. Haynes held a pre-trial conference in the case of the State of Alabama vs. electronic bingo operators and charities in Greene County. The purpose of the hearing was to hear pre-trial motions and concerns from both sides.

    The State of Alabama has been pushing to close down electronic bingo in Greene County, because they consider the bingo machines to be “nuisance illegal slot-machines” operating in an illegal manner. The State, backed by an Alabama Supreme Court decision that bingo is “a game played on paper cards, with five rows and five columns of letters and numbers”, has closed bingo operations in Macon, Lowndes, and Jefferson counties, which are all jurisdiction controlled by Black voters.

    The voters of Greene County, another majority Black County, voted overwhelming in favor of Alabama Constitutional Amendment 743, in 2004,
    which allowed for “electronic forms of bingo” to be play under the supervision and regulations of the Sheriff of Greene County. The county and municipal governments, school system, hospital, Sheriff’s office and assorted smaller non-profits and charities benefit from the gaming industry in Greene County, which generates $600,000 a month in fees for these agencies.

    The four currently operating electronic Bingo facilities in Greene County – The Palace, River’s Edge, Frontier and Bama Bingo – employ 300 to 500 employees, who will lose their jobs if the State of Alabama succeeds in closing these establishments. The Governor, Attorney General and other officials of the state have offered no potential alternative employment for those who will likely lose their jobs if the State of Alabama wins this lawsuit.

    Greenetrack, which previously led and was involved in electronic bingo, has ceased bingo operations, and been dismissed from the case. Greenetrack, now operating as Greene County Entertainment, conducts simulcasting of dog and horse racing at other tracks as well as operating “historic horse racing machines” under its parimutuel wagering license.

    Attorney and former Circuit Judge John H. England, Jr., who is one of the attorney’s representing River’s Edge Bingo, said, “There are still many unanswered issues relating to this case, some of which were raised at this hearing. Judge Haynes set another hearing date for November 2, 2023, for questions and issues related to the case. He hoped to set a trial date at that conference, but no date was set at this hearing.”

    England indicated that questions were raised about the State of Alabama’s treatment of bingo in Houston County, a primarily white controlled political area as opposed to their treatment of areas like Greene, Lowndes, and Macon counties, which have Black voting majorities. England said, “Many issues were raised about the unequal treatment of Greene and other Black controlled counties, in comparison to Houston County, which also has electronic bingo machines, but was offered a settlement, by the State of Alabama, which the state has not enforced, until the issue was raised in the May 2023 hearing on bingo in Greene County.”

    Attorney Gregory Yaghmai, who represented the Bama Bingo establishment at the hearing, reported at the hearing on his visit to Houston County to play the machines.

    Yaghmai explained, “The State of Alabama has treated electronic bingo differently in Houston County than they way they are trying to do in Greene County. First, Greene County has a stronger Constitutional Amendment, 743, which recognizes electronic forms of bingo in its wording which Houston and other counties do not have.”

    Yaghmai indicated, “That the State of Alabama reached a settlement agreement in 2019, with Houston County, which allowed them to keep operating their electronic bingo machines. No similar settlement has been offered to Greene County. Further, the State of Alabama did not visit Houston County to review and enforce the agreement for four years.”

    Yaghmai said, “When I went to Houston County to play the machines recently, I learned the state had visited in June after our May 4th hearing in the Greene County case, to advise Houston County gaming officials how to modify the machines to make them ‘machines of skill’ rather than illegal slot-machines. The machines now have additional buttons to push, which the state says requires skill and the checkout process requires a paper bingo card. These changes were adopted recently after, we raised issues about unequal administration and protection of the laws by the State Attorney General.”

    Yaghmai also complained, “All Greene County bingo establishments have been ‘randomly’ audited by the Alabama Department of Revenue after the May 4th court hearing. This is not fair, and the State seems to be using the Revenue Department to enforce the Attorney General’s rules on gambling. The State has not responded to these complaints.”

    Attorney Hank Sanders, who represents the Greene County Health System at this hearing said there are still many loose ends in this case and that the earliest a trial could be held is December 2023 or next year.

    Sanders said that Judge Haynes denied his motion to intervene in the case but invited him to submit ‘friend of the court briefs and other motions on behalf of his clients. Sanders said, “The State has never answered our motions that closing electronic bingo would violate the Americans with Disabilities Act because blind people cannot play bingo on cards, but they can listen to the electronic bingo machines and know when they are winning.”

    Sanders said at the trial, it may come down to the strength of Constitutional Amendment 743 and its provisions allowing “electronic forms of bingo” over the contentions of the State of Alabama that the machines are merely illegal nuisance slot machines.

  • Alabama Legislature considers Lottery and Bingo bills that impact Greene County

    News Analysis by John Zippert, Co-Publisher

    The Alabama Legislature is considering several bills concerning a statewide lottery and changes to Constitutional Amendment 743, allowing charity bingo in Greene County, which may affect the future of gaming and the distribution of revenues from electronic bingo in the county.
    Initially there were two lottery bills before the Alabama State Senate Tourism Committee to allow for a statewide lottery and multi-state games like Powerball and Mega Millions.
    SB 220 sponsored by Senators Albritton, Glover and Hightower provides for a paper lottery, similar to that in neighboring states, with the proceeds going primarily to the state’s General Fund, after paying for $180 million in loans from the Education Trust Fund, borrowed over the past three fiscal years to balance the state budget.
    SB 130 sponsored by Senators McClendon, Singleton and others provided for a statewide paper lottery and “virtual lottery terminals” at designated places in Mobile, Macon, Jefferson, Greene and Lowndes counties, that previously were licensed for pari-mutuel betting on dogs and horses. This lottery bill would have generated more revenues for the state and local entities.
    In Greene County, the McClendon and Singleton lottery bill would only allow “virtual lottery terminals” at Greenetrack. The bill also provided for the virtual lottery terminals to replace bingo terminals over a one-year period. There was no mention of the future of the other bingo operations in Greene County.
    SB 220 (Albritton’s bill) for a basic paper lottery was approved by the Senate Tourism Committee and by the full Senate in a vote of 21 to 12. As a Constitutional Amendment it required a super majority, 60% vote, which it did achieve.
    Senator Singleton’s bill providing for “virtual lottery terminals” was not considered by the Senate Tourism Committee. Senator Singleton tried to amend the Albritton bill on the floor of the Alabama Senate but he was unsuccessful.
    Senator Linda Coleman-Madison amended the bill with language that the bill would not affect counties, like Greene, that had Constitutional Amendments prior to 2005 permitting charitable bingo. “ I was trying to make sure that this lottery bill did not interfere with bingo, in places like Greene County, that had established Constitutional Amendments permitting bingo,” said Senator Coleman-Madison.
    The Albritton Lottery bill is now in the Alabama House Tourism Committee awaiting a vote. It will have to be approved by 63 Representatives, a 60% super majority to move forward. You can also expect efforts to add “virtual lottery terminals” in the House to the bill. Some House members have raised the concern that the revenues generated by the lottery do not go to support the Education Trust Fund.
    If the lottery bill passes both houses of the Legislature and is signed by the Governor, it will face a statewide referendum on the March 3, 2019 Presidential Primary ballot before it becomes part of the State Constitution and tickets can be sold.

    Singleton’s Bill to change Amendment 743

    Senator Bobby Singleton in the wake of failing to add “virtual lottery terminals” to the Lottery bill was able to pass SB321 which repeals and replaces Greene County’s Bingo Constitutional Amendment No. 743. Singleton’s bill is in the House Tourism Committee awaiting a vote. If this bill passes the House, it will require a referendum by the people in Greene County before it takes the place of the current amendment.
    Singleton’s proposal would substitute a five member Greene County Gaming Commission to “regulate and supervise the operation and conduct of bingo games” for the role of the Sheriff of Greene County, who administers bingo under the current Constitutional Amendment 743. The five members of the Gaming Commission would be chosen by the area’s legislative delegation including State Senator Singleton and Representatives A. J. McCampbell and Ralph Howard.
    Singleton’s proposal would levy a 2% tax on the gross receipts of bingo to go to the State of Alabama and a 10% local tax on the gross receipts to go to the Gaming Commission, Greene County Commission and municipalities. A portion of the tax is also allocated to the Greene County Board of Education (2%); Greene County Firefighters Association (1/2 %); Greene County Hospital (1%); E-911 (1/2%); Greene County Industrial Board (1/4%); Greene County Ambulance Service (1/4%); Greene County Housing Authority (3/4%); and the remaining (3/4%) to non-profit agencies in the county.
    These taxes on the gross revenues, which are defined as the total wagered minus prizes and promotions, would take the place of the current $225 fee per machine, per month, paid to the Sheriff and on to the county agencies and charitable organizations.

    To measure the impact of these changes, you have to estimate the current gross revenues of bingo in Greene County, which is a figure that has never been revealed by the bingo operators.
    Since Senator Singleton has been heavily influenced by Greenetrack and its CEO, Luther ‘Nat’ Winn, other bingo operators feel this amendment changes the whole structure of charitable bingo in the county and does not guarantee that the new Gaming Commission would recognize current licensees. There is no mention of “grand-fathering-in” any of the existing bingo operations under this new amendment.
    A Letter to the Editor from Billy McFarland, connected with the TS Police Support League, a charity connected to the Palace Bingo operation is included in this week’s paper, which is critical of Singleton’s proposed new bingo amendment.
    The Democrat invites our readers and others to comment on these developments affecting electronic bingo in the county so we can evaluate the proposals and make the best, most informed and democratic choices about bingo in Greene County going forward.

  • Alabama Supreme Court rules against electronic bingo in Greene County

    On Friday, December 23, 2016, the Alabama Supreme Court issued two rulings, which Alabama Attorney General Luther Strange states, “These rulings show that electronic bingo is illegal in the state of Alabama.”
    In the case State of Alabama v. 825 Electronic Gambling Devices et al (Greenetrack), the Alabama Supreme Court ruled in favor of the State, reversing a lower court judgment siding with the casino. As a result, the State of Alabama is allowed to destroy the electronic bingo machines it seized from Greenetrack in 2010.
    In its 29-page ruling released Friday, the Supreme Court reaffirmed its March 31, 2016 ruling in a similar case involving the legality of electronic bingo machines.
    “There is no longer any room for uncertainty, nor justification for continuing dispute, as to the meaning of [the term ‘bingo’]. And certainly the need for any further expenditure of judicial resources, including the resources of this Court, to examine this issue is at an end.
    All that is left is for the law of this State to be enforced,” the Supreme Court said.
    In a separate case (Macon County Greyhound Park, Inc., d/b/a Victoryland v Marie Hoffman), the Supreme Court ruled that individuals have a right to sue illegal gambling institutions.
    “Because the ‘contracts’ containing the arbitration provisions in these cases were based on gambling consideration, they were based solely on criminal conduct, and are therefore void. Consequently, the provisions of those ‘contracts,’ including arbitration provisions are void and unenforceable,” the Supreme Court ruled.
    Attorney General Strange emphasized that these rulings, combined with the Supreme Court’s March 31, 2016 ruling against Victoryland, remove any doubt that electronic bingo in all its forms is illegal in Alabama and that local law enforcement should do their duty to enforce the law.
    “Local sheriffs and police officers in most parts of the State are enforcing our gambling laws. The sheriffs in Greene and Macon counties must uphold their sworn duty to enforce the law as interpreted by the Supreme Court and not continue to sanction this illegal activity.
    “My office stands ready to render any required assistance to enable them to carry out their duties,” said AG Strange.
    The Alabama Supreme Court decision ignores the intent and support of the voters of Greene County to overwhelmingly approve Constitutional Amendment 743, which allows for electronic forms of bingo, say knowlegable observers in Greene County.
    The Alabama Supreme Court has ruled in previous decisions that bingo is a game played on paper cards, with five numbers across and five down. The players must mark their cards and call out a bingo when they have it on their cards. The Alabama high court decision overlooks the changing digitalizing and electronic adaptions of all devices in our society.
    “ I am sure that every member of the Alabama Supreme Court has a cellular phone in their pocket and they would not rule that the cellular phone is not a telephone, but they have ruled that electronic bingo machines are not bingo,” said a member of the Greene County school board, which is a major recipient of bingo funds.
    “This is a voting rights issue for us now in Greene County. The Alabama Supreme Court should not be allowed to overrule the voters of Greene County who approved electronic bingo. This high court should not be able to strip Greene County of revenues and jobs from electronic bingo,” said Lester Brown, Greene County Commissioner District 1.
    A countywide meeting will be held on Tuesday, January 3, 2017 at 6:00 PM at the National Guard Armory for citizens of Greene County to discuss the impact of this decision and plans for going forward to defend Constitutional Amendment 743.