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Electronic Bingo Machines in Alabama

Overview of Alabama's Policy on Electronic Bingo Machines

Electronic bingo, in Alabama is a form of gaming with the player paying money to play against the house where there is not a guaranteed winner. Gambling includes casino gaming, electronic slot or bingo, and lotteries of any form. Section 65 of the Alabama State Constitution defines a lottery as a game of chance that a player has to pay to play for a chance to win a prize . The legality of electronic bingo machines is controversial due to local gaming laws, debate over policy interruptions, and bribery issues. The Poarch Band of Creek Indians operates three gaming facilities in Alabama that include electronic bingo machines.

The Alabama Constitution: Electronic Bingo and Subsequent Legislative and Judicial Changes

The Constitution of Alabama of 1901 states, “The legislature shall have no power to authorize lotteries or gift enterprises for any purposes, and shall pass laws to prohibit the sale in this state of lottery or gift enterprise tickets, or tickets in any scheme in the nature of a lottery" (Article IV section 65). Alabama's Constitutional Amendment 555 allows amendments to the constitution. Local governments in Alabama do not have home rule or the authority to decide local gaming laws. Amendments with statewide voting are required to operate bingo games for prizes or money by nonprofit organizations for charitable or educational purposes in a city or county. Under amendments 386, 387, 413, 440, 506, 508, 542, 550, 565, 569, 612, 692, and 744 to the Alabama Constitution The operation of bingo games for prizes or money by nonprofit organizations for charitable or educational purposes shall be legal in Jefferson, Madison, Montgomery, Mobile, Calhoun, St. Clair, Etowah, Covington, City of Jasper, Houston, Russell, Limestone, and Macon County.

A row of "Wheel of Fortune" slot machines in a casino in Las Vegas. This specific slot machine is themed to the TV game show Wheel of Fortune.

Listing of Alabama Cities and Counties with Legal Bingo:

(Counties/Cities) (Constitutional Amendments that allow bingo)

Jefferson County - Amendment 386

Madison County - Amendment 387

Montgomery County - Amendment 413

Mobile County - Amendment 440

Calhoun County - Amendment 508

St. Clair County - Amendment 542

Etowah County - Amendment 506

Covington County - Amendment 565

City of Jasper - Amendment 550

Houston County - Amendment 569

Russell County - Amendment 612

Limestone County - Amendment 692

Macon County - Amendment 744

Cities and Counties with Different Bingo Laws

There are three Alabama counties with different gaming laws due to the different jurisdictions and city regulations. Under amendment 549 of the Alabama Constitution, bingo is legal outside the corporate limits of the city of Jasper in Walker County. Under amendment 599 of the Alabama Constitution, Morgan County allows bingo in the cities of Hartselle and Falkville and in only a small portion of the City of Decatur. Under amendment 674 of the Alabama Constitution, Lowndes County allows bingo only in the city of White Hall.

Title 13A Criminal Code of Alabama on Illegal Bingo

Under Title 13A, Criminal Code of Alabama, Chapter 12, Section 13A-12-27, "A person commits the crime of possession of a gambling device if with knowledge of the character thereof he manufactures, sells, transports, places or possesses, or conducts or negotiates any transaction affecting or designed to affect ownership, custody or use of: (1) A slot machine; or (2) Any other gambling device, with the intention that it be used in the advancement of unlawful gambling activity."

The Characteristics of a Slot Machine

In order to understand how the state of Alabama regulates electronic bingo, the characteristics of a slot machine must be understood.

A slot machine

A. How to Operate a Slot Machine

In conventional Bingo a player is expected to put effort into his or her card(s) to achieve a preset pattern to win . However, with electronic bingo, players are simply expected to push a button and an entire game is played in a matter of seconds. The system used to classify types of gaming devices defines a Class II device as a gaming device that is networked in such a manner that puts each player against each other . While conventional electronic bingo machines claim to do this, in reality, the machines are pitting each player against a Random Number Generator (RNG) and the RNG is essentially the House . If a machine places a player against the House, then it is a Class III machine and illegal in the state of Alabama.

The cited resource explains the common system used by many states to classify the electronic gaming devices . According to Alabama state law, Class II gaming devices are permitted in the state of Alabama . The county then decides to allow them for use or to have gambling of any sort banned through the authority granted to each county by Section 65 of the Alabama State Constitution .

B. Characteristics of Legal Bingo in Alabama

In the counties listed above that do allow electronic bingo, the following criteria must be met in order for the machine to be legal according to Alabama's bingo machine policy . If a machine is a bingo machine, it must have:

1) 5x5 Grid B-I-N-G-O

2) Must have numbers from B-1 to O-75

3) The game must not be played against the house.

Alabama's policy on electronic bingo is derived from the classic game of chance BINGO .

Recent Policy Debate on Electronic Bingo Machines

In 2010, two elected officials in Alabama debated whether or not electronic bingo machines in Alabama are illegal. Former Republican Governor Bob Riley created a Task Force to eliminate illegal forms of gambling including slot machines. Former Attorney General Troy King, who is also a Republican, planned to take action on whether or not to outlaw electronic bingo. According to gaming manufacturers, there are bingo machines that resemble slot machines. "Alabama's constitution explicitly forbids slot machines, but some counties have passed constitutional amendments allowing traditional paper bingo for charity" . Alabama has built casinos to compete with Mississippi and the state has gained money making Alabama a tourist attraction. In 2010, the Alabama Supreme Court ruled that slot machines are illegal because the machines "have none of the elements of human skill and interaction that are fundamental to the game of bingo" . In his 2010 state address, Governor Riley encouraged lawmakers to forbid illegal gambling and warned against legalizing slot machines. In March, 2010, Circuit Judge Robert Vance Jr. ruled that Attorney General Troy King should step in and defend the state's interests concerning gambling. Riley appealed Judge Vance's ruling stating, "Judge Vance's ruling represents judicial activism at its worst" . "The law of Alabama gives the governor the authority to assign certain active and retired district attorneys to represent cases anywhere in the state, but Judge Vance has added an additional requirement that allows the Attorney General to give advance approval before the attorneys can participate in such cases" . Attorney General King asked Governor Riley to file a request for declaratory judgement in each county that has a bingo facility.

The gambling controversy also became a campaigning factor for 2010 gubernatorial elections. Ron Sparks claimed that gambling should be voted on by counties willing to participate in it, but it should be taxed or used for charitable purposes. U.S. Congressman and Democratic candidate for governor, Arthur Davis advocated letting the voters decide by voting on a constitutional amendment. According to former Alabama Supreme Court Chief Justice and Republican candidate for governor, Roy Moore, "Electronic bingo is another attempt to subvert the anti-lottery provision of the state constitution and should be stopped, and we need strict enforcement of the law" .

Current Governor Robert Bentley on Illegal Gambling

In one of his first actions as governor, in January 2011, Robert Bentley terminated the Task Force created by former Governor Riley. He assigned the issue of illegal gambling over to the new Attorney General Luther Strange and expects Strange to determine the law. "We do not need the present task force," .

Current Attorney General Luther Strange on Illegal Gambling

Luther Strange encourages the state and local law enforcement officials and local elected officials to enforce Alabama's laws against illegal gambling. "I will marshal the full force of the Attorney General’s office to end illegal gambling operations in Alabama" . "There should be no presumption of cover for anyone planning to open an illegal slot machine operation under the guise of bingo" .

Bribery Issues Concerning Electronic Bingo Machines

In 2010, “Agents from the U.S. Department of Justice, the U.S. Attorney’s office and the FBI say they have found “substantial evidence of corruption” around a legislative battle to formally legalize the bingo machines, which look similar to slot machines” . According to federal authorities, there have been over $2 million offered in bribes to lawmakers in Alabama so that casino owners can keep their gaming parlors legal . During the 2009 and 2010 legislative sessions, the Justice Department claims, "operators of the two largest private casinos and teams of lobbyists were offering millions in campaign contributions, benefit concerts by country music artists, free polling and hidden $1 million-a-year payments in return for votes” . Owners of the two popular casinos in Alabama, Ronald Gilley and Milton McGregor and their lobbyist, were indicted on October 1, 2010, for bribing lawmakers. Following this incident, 11 people, including Alabama legislators, casino owners, and lobbyists, were arrested and charged with conspiracy, bribery, and honest service fraud . The Alabama legislators indicted are Sen. Harri Anne Smith of Slocomb, Jim Preuitt of Talladega, Larry Means of Attalla,and Quinton Ross Jr. of Montgomery. Smith called the indictments "a nakedly political move, coordinated by prosecutors in cahoots with the governor's office" to influence the 2010 November elections . Milton McGregor, the owner of Victory Land in Shorter, AL, had extended the dog track, added a five-star hotel, and a restaurant to Victory Land. Ronald Gilley, the owner of Country Crossing in Dothan, had country musicians, a concert amphitheater, a restaurant, and an inn . Victory Land and Country Crossing casinos are out of business as of January 2010. On April 22, 2011, Ronald Gilley pleaded guilty to one count of conspiracy, six counts of bribery, and four counts of money laundering in an alleged scheme to buy votes for pro-gambling legislation. "The casino owner who last week pleaded guilty to charges of offering millions of dollars in bribes to legislators was released from jail Tuesday morning and will be allowed to spend time with his family before sentencing" .

History of Native American Owned Casinos in United States

There are currently 562 federally recognized American Tribes in the United States, with 297 legitimate reservations nationwide . An Indian Reservation is defined as “Land which is managed by a Native American tribe under the United States Department of Interi or’s Bureau of Indian Affairs” . The issue of gambling on Indian Reservations began in the late 1970’s when a Florida-based Seminole Tribe opened a high-stakes bingo operation within the confines of it land. The gaming facility was an instant hit within the reservation and to visitor of the reservation; however court controversy began almost immediately thus opening a whirl of legal suits dealing with gambling on Indian Reservations across the country. In 1988 Congress passed the Indian Gaming Regulatory Act, keeping tribal sovereignty to create casinos on reservations, but the states and Indians must be in a Tribal-State compacts and the federal government has the power to regulate the gaming . Since Congress passes the Indian Gaming Regulatory Act the gaming Industry has averaged a $19.4 billion industry per year and is continuing to grow .

A. Native American Owned Casinos in the United States

Currently, revenue from Indian owned casinos continue to top income from that of Las Vegas and Atlantic City casinos combined year after year. Tribes that are not recognized are petitioning to become recognized so they can open casinos on their reservation; because life on a reservation without the revenue of a casino has proven to be much more difficult than life on a reservation with them . There are currently 367 Indian owned gaming establishments in the United States that are regulated by the National Indian Gaming Commission. The Commission’s primary mission is to regulate gaming activities on Indian lands for the purpose of shielding Indian tribes from organized crime and other corrupting influences, to ensure that Indian tribes are the primary beneficiaries of gaming revenue, and to assure that gaming is conducted fairly and honestly by both operators and players. To achieve these goals, the Commission is authorized to conduct investigations and undertake enforcement actions. Such actions include the issuance of violation, assessment of civil fines, and issuance of closure order. The Commission is also responsible for conducting background investigations, conducting audits, and reviewing and approving Tribal gaming ordinances .

B. Native American Gaming Establishments in the State of Alabama

In the state of Alabama there are currently three casinos managed by the Poarch Creek Indians. The Poarch Creeks are descendent of the original Creek Nation. Unlike most of the Creek Nation tribes, the Poarch Tribe was not removed from their tribal lands and has lived together on their reservation for almost 200 years. “The Poarch Band of Creek Indians is the only federally recognized Indian Tribe in the state of Alabama, operating as a sovereign nation with its own system of government and bylaws. The Tribe operates a variety of economic enterprises, which employ hundreds of area residents. Poarch Creek Indian Gaming manages three gaming facilities in Alabama, including the Creek Entertainment Center in Atmore, Riverside Entertainment Center in Wetumpka, and Tallapoosa Entertainment Center in Montgomery. The Poarch Band of Creek Indians is an active partner in the state of Alabama, contributing to economic, educational, and cultural projects benefiting both tribal members and residents of these local communities and neighboring towns."

History of Gambling in Alabama Timeline

1954, the father of Alabama’s former governor John Patterson was shot down in Phoenix City, AL while trying to stop illegal gambling .

1994, businessman Dennis Holderfield was accused, along with five others, for setting up a casino with poker tables in their office space in Huntsville, AL. .

2004, Alabama Governor Bob Riley established the task force led by former Jefferson County District Attorney David Barber to stop and forbid illegal gaming .

2006, Over $100,000 in campaign contributions from Milton McGregor was given as a donation to stop the regulation on the gaming laws .

2009, illegal gambling was ordered to be terminated by Governor Bob Riley.

2010, all electronic gaming devices were ordered by Eddie Hardaway removed from the Greene Track Casino and all other casinos in Alabama

See also

Alabama Attorney General Troy King on Electronic Bingo http://www.youtube.com/watch?v=gKbkFOaKPpY%7Curl=http://www.youtube.com/watch?v=gKbkFOaKPpY%7Cpublisher=RickyStokesNews.com.

Lottery in Alabama: The Pros and Cons http://www.cbs42.com/content/special/story/Lottery-in-Alabama-The-Pros-and-Cons/k1BoxjeTHU-SKLr8_HnxQw.cspx.