Published on: December 5, 2024, 11:19h.
Last updated on: December 5, 2024, 11:21h.
The City of Lipscomb, Ala. will be able to pay its employees this week after Alabama’s Attorney General’s Office agreed to release $107,000 from city accounts frozen last month over illegal gambling.
The action followed a meeting of the city council on Monday to repeal the bingo ordinance that displeased State AG Steve Marshall.
Nevertheless, a temporary restraining order on the accounts remains in place for another seven days, pending further legal proceedings.
‘Menace to Morals’
Steve Marshall accused the city of licensing Jay’s Charity Bingo, an electronic bingo parlor, and alleges it continues to receive “illegal funding” from the “illegal gambling.” Marshall has labeled electronic bingo as “a menace to public health, morals, safety, and welfare.”
Following a ruling by the Alabama Supreme Court in October 2022 that only traditional bingo games were lawful in the state, Marshall initiated strict enforcement measures.
The AG’s Office raided Jay’s Charity Bingo in late August. Inside, they found dozens of stolen machines that had been impounded by the state from another illegal bingo parlor 80 miles away. The machines still had their “state evidence” stickers on them, according to the AG’s Office.
Subsequently, five individuals linked to the business were arrested and charged with third-degree burglary. Marshall’s Office conducted another raid on the premises in late November after Jay’s resumed operations. This time, Marshall filed a lawsuit against the city, claiming it was complicit in the operation.
‘Proceeds of Crime’
Although the council has revoked its local bingo regulations, Deputy Attorney General John Kachelman informed the court this week that the city transferred over $200,000 from the bingo account to the general fund last month. Kachelman insisted that these funds were proceeds of crime and should be confiscated by the state.
Some councilors pointed fingers at Lipscomb Mayor Tonja Baldwin for allowing Jay’s to continue functioning without council approval, as reported by AL.com last month.
However, Baldwin argued that Lipscomb needed the funds as the city of just over 2,000 inhabitants is financially struggling, with numerous businesses along its main commercial street closed down.
“The revenue generated through taxes in the city and the council is insufficient to sustain operations,” remarked Jefferson County Commissioner Sheila Tyson to AL.com. “Without the bingo revenue, the city will face financial difficulties since there are not enough residents to cover expenses.”