The Alabama town of Lipscomb has had its government effectively shut down following a raid by state officials on the electronic bingo hall that was the town’s primary source of revenue.
The status quo in Alabama is that almost all forms of gambling are illegal, but a lack of adequate enforcement has led to the proliferation of illegal gambling and gambling-like products that exist in a legal gray area. Lawmakers attempted to remedy the situation by passing a gambling bill this year, but the effort failed by a single vote in the Senate. They will try again next year, but Lipscomb’s situation is an example of the chaos that exists in the meantime.
Lipscomb, a town of 2,000 just south of Birmingham, saw its accounts frozen after Alabama Attorney General Steve Marshall shut down Jay’s Charity Bingo.
Alabama tribal casinos can offer electric bingo because the federal Department of the Interior considers the machines a form of Class II gaming. However, the state’s Supreme Court disagreed with that assessment, ruling them illegal in 2022. The tribes are outside the state’s jurisdiction, but the Supreme Court ruling resulted in a series of enforcement actions against commercial bingo parlors. A This was the second time the state raided Jay’s Charity Bingo, the first in August. With its accounts frozen and a court hearing scheduled for December 2, Lipscomb’s city services, including police and garbage collection, are grinding to a halt, leaving 25 employees unpaid.
Gary Richardson, host of the Gary Richardson Morning Show on WJLD Radio, called the accounts freeze the harshest measure since the electronic bingo shutdowns began. Richardson, who is also the mayor of nearby Midfield, and his callers criticized the attorney general’s overly aggressive approach. He also accused the state of hypocrisy, pointing out that similar gaming operations are allowed elsewhere.
Mayor and Council Blame Each Other
On December 2, a court will determine how to proceed with Lipscomb’s accounts. Still, city employees continue to do their jobs amid an uncertain future. Mayor Tonja Baldwin told AL.com that services remain operational, and she even paid some bills from her own pocket. Baldwin argues that bingo revenue is critical for the city’s survival. She says the funds go towards attracting new businesses.
The bingo raid has led to more than freezing the accounts. The mayor and city council are pointing the finger at each other for the chaos. Councilwoman La Kendria Poellnitz and others blame the mayor for overstepping her authority and mismanaging the situation. They say Baldwin approved businesses without their approval. Some even called on Marshall to intervene, which he ultimately did. Meanwhile, Baldwin said she proposed to address bingo, but the council failed to act on it. Jefferson County Commissioner Sheila Tyson agreed that bingo revenue is critical for Lipscomb. She called for cooperation between the mayor and the city council to find a solution.
Gambling Legislation Came Close in 2024
The situation in Lipscomb highlights a well-known problem in Alabama: lack of legal options has allowed illegal and gray market gambling to thrive. Eradicating it has proven difficult because many businesses—and even entire towns—have come to depend on it. It’s unclear what Lipscomb’s fate will be if it has to do without electronic bingo machines and no legal replacement is forthcoming.
Lawmakers, including House Speaker Nathaniel Ledbetter, are aware of the issue. Ledbetter is among those most concerned with illegal gambling and last year emphasized that ridding the state of unlawful gambling is a priority. He was among the biggest supporters of a comprehensive gambling bill in the House this year. The proposal called for a lottery, tribal and commercial casinos, sports betting, and the establishment of a gaming regulator. The bill passed in the House, but the Senate rejected it. Senators wanted to see a different set of gambling options legalized, proposing historical horse racing machines and off-track betting instead of commercial casinos and sports betting.
The two chambers couldn’t agree, so they moved the issue to a bicameral conference committee to negotiate a compromise. While the committee reached a compromise, it fell one vote short in the Senate, thus failing to get to the governor’s desk and voters.
Gambling Talks Expected to Resurface in 2025
While a gambling proposal failed to reach voters this year, many lawmakers agree the issue is too big and will be a topic in 2025. Sen. Greg Albritton, the original sponsor of the Senate bill who ultimately voted against it, says illegal gambling will remain a problem until the state takes control of the industry. However, Albritton thinks it will be difficult to find a bill sponsor next year.
While he won’t be one, Rep. Andy Whitt, a key figure in this year’s House bill, expects several gambling bills in 2025. Rep. Sam Jones, another of the House gambling bill sponsors, says he’s willing to work across both aisles and chambers. Jones wants the issue to reach voters.
About the Author
