A federal judge has determined that the city of Hitchcock, Texas, cannot pursue legal action against Galveston County or the sheriff’s office to reclaim approximately 9% of its yearly budget, which authorities suggest is linked to illegal gambling activities.
The lawsuit was filed following the seizure of about $721,000 from the city’s general fund bank account on June 24 by Sheriff Jimmy Fullen’s office.
In its complaint, Hitchcock stated that the seizure has triggered an “immediate, severe emergency,” jeopardizing the city’s capacity to fund essential services and ensure public safety. The city also mentioned the absence of any available credit line or quick financing options to recover the lost funds.
Constitutional Rights Violations
The city contended that the seized funds are public money and not derived from illegal gambling. It claimed violations of its Fourth and Fourteenth Amendment rights, arguing that the sheriff’s office lacked valid cause for the seizure and that sovereign immunity should protect public funds allocated for government operations.
However, U.S. District Judge Jeffery Brown dismissed the lawsuit, stating that “one governmental entity cannot sue another entity” under the federal civil rights statute, 42 U.S.C. § 1983.
Understanding Eight-Liners
Hitchcock has a history of managing “eight-liner” and amusement gaming machines through local permits.
An eight-liner is a slot-style gaming machine typically found in Texas game rooms, allowing players to gamble on multiple paylines and win credits redeemable for prizes. Although these devices are often marketed as legal amusement, courts are increasingly ruling that many violate state gambling regulations.
Following an inquiry by the sheriff’s office into unlawful payouts and related criminal activities, authorities conducted raids on several city locations in February, leading to numerous arrests and the confiscation of hundreds of machines.
Mayor Charged
Among those arrested was Hitchcock Mayor Christopher Armacost, following the discovery of what authorities allege to be illegal gambling machines at a laundromat he owns in the city. Armacost faces charges of felony engaging in organized criminal activity, which he disputes.
Undercover deputies who played on Armacost’s machines reportedly received 40 to 70 credits on a printed ticket, which they later exchanged for cash, according to court documents.
In 2022, the Second Court of Appeals in Fort Worth concluded that eight-liners fit the Texas Constitution’s definition of an illegal lottery, as they encompass the three essential elements: chance, consideration, and a prize. The ruling stated that it was irrelevant whether winnings were provided in cash, credits, or merchandise.
The eight-liner game rooms have long been a source of contention in Texas. While some municipalities have issued permits and regulated these businesses as local amusement establishments, many sheriffs and prosecutors argue that such permits cannot legitimize activities prohibited by state gambling laws, leading to increased enforcement against these machines.