Gambling

"It is axiomatic that one may not lawfully do indirectly what is unlawful to be done directly" Barber v. Jefferson County Racing Ass'n, 960 So.2d 599 (Ala 2007).

"Gambling brings bad people to town and brings out the bad in good people" Former Governor John Patterson.

Country Crossing was marketed to the public as a bigger and better Branson-Missouri. As excitement grew the community was introduced to a new concept, "electronic bingo," --along with the recurring message that "electronic bingo" was legal.

With great fanfare and the investment of millions of dollars Country Crossing opened its doors in December only to lock them in January. The doors were locked because Country Crossing, unlike the family entertainment facility in Branson, was first and foremost a casino.

While County Commission Chairman Mark Culver repeatedly assured the public "electronic bingo" was legal, that assertion was being successfully challenged in court.

How did it get this far? The public rightfully wants to know the facts and to affix fault when a public-private venture turns into a public boondoggle.

Ten years ago there was no confusion about "electronic bingo"– very few of us had ever heard the term used. Alabama voters had rejected an education lottery by a substantial margin and everyone knew slot machines were illegal.

One hundred years of Alabama jurisprudence demonstrates a consistent rejection of numerous schemes crafted to get around Alabama's gambling laws. Three decisions in the 1990s rejected collaborative efforts between gambling operators and local elected officials to legitimize gambling operations under the authority of a charitable bingo enactment. Addressing that ordinance the Barrett opinion stated:

[A}s a matter of law, the City of Piedmont could not pass an ordinance that broadens the scope of the narrow exception to the prohibition of lotteries in the Alabama Constitution...Construing the ordinance as a whole in harmony with strongly expressed public policy, we hold that no expression in the ordinance can be construed to include anything other than the ordinary game of bingo.

Barrett, supra at 532.

Such pronouncements of the law have not deterred gambling operators, such as Milton McGregor. To them, it simply meant Alabama was an unexploited market ripe for development.

In 2005 McGregor thought he had discovered a loophole in the law and opened Quincy's MegaSweeps at the Birmingham Race Course. His scheme eventually ended up being reviewed by the Alabama Supreme Court, after McGregor obtained a favorable ruling from the trial judge who agreed that McGregor had found and successfully exploited a loophole. The Alabama Supreme Court was not fooled, stating: "Alabama's gambling law, however, is not so easily evaded. It is 'the policy of the constitution and laws of Alabama [to prohibit] the vicious system of lottery schemes and the evil practice of gaming, in all their protean shapes.

(emphases in original opinion) see Barber v. Jefferson County Racing Ass'n, 960 So.2d 599 (Ala 2007).

Though the Quincy's MegaSweeps venture experienced only limited success, gambling operators such as McGregor learned a great deal. First, developing a gambling operation premised on a "loophole" in a large metropolitan area such as Jefferson County was problematic. The numerous political connections needed to facilitate such an operation were more difficult to develop. The sheriff and district attorney had vigorously prosecuted the case all the way to the Alabama Supreme Court. Second, he had succeeded in persuading a trial judge to rule in his favor. This was significant. If it could be done once, it could be done again.

The ideal environment to establish a Mega casino was an area of high unemployment, an area where elected officials would be more receptive to promises of employment and economic development.

McGregor refocused his attention on his investment in Shorter, Alabama, a community of less than 300 as of the 2000 census. Shorter is located in Macon County, which was sparsely populated, characterized by chronic high unemployment and ranked last in Alabama in per capita income-- thirty-three percent of its population was considered "below the poverty level." The same type demographics described Greene and Lowndes Counties.

These counties were very receptive to inducements that included promises of economic development, jobs, and new sources of tax revenues.

In return, local resolutions were passed under the guise of regulating charitable bingo. The resolutions all had this in common: they were essentially grants to each operator of a defacto government sanctioned monopoly to open and operate a casino. These resolutions purported to recognize "electronic bingo" as "legally permissible."

McGregor also developed a relationship with Alabama Attorney General Troy King. In December 2004, King issued the now infamous Findings of his Gambling Review. With no consideration of the cases cited above, nor any of the other body of appellate decisions that have uniformly struck down attempts to skirt the law on gambling, without any reasoned analysis that would withstand judicial scrutiny, King gave his opinion that "electronic bingo" machines were "legally permissible."

Although King's "opinion" carried no legal weight and has since been thoroughly discredited by numerous appellate decisions, it had a profound impact. First, to gambling operators, local district attorneys and county sheriffs there would be no enforcement of the gambling laws where "electronic bingo" was operated under a charitable bingo enactment. Second, it gave casino developers the color of legitimacy to further develop collaborative efforts with cooperative elected officials. The scale of the gambling operations expanded exponentially.

Soon, there were billboards all around the state portraying pictures of persons who had won jackpots. Milton McGregor was on television telling audiences "you could be a winner, too!"

Alabama citizens began to sense confusion about the legality of slot machines. There had been no vote on gambling since the education lottery was defeated. Yet, everywhere there were billboards advertising Quincy's 777 Casino.

It was against this back drop that Ronnie Gilley formulated his vision for Country Crossing.

Gilley first pitched his vision in Coffee County. This was his home, where he grew up, where he conducted business. However, he could not get the support he needed from Coffee County.

He found a willing collaborator in Houston County Commission Chairman Mark Culver who assured Gilley Houston County was progressive and pro-development. Soon, the Houston County Commission and others were being impressed by Gilley's command of facts, figures, projections, his knowledge of the Branson-Missouri, development and the positive comparisons he drew between the demographics of Southeast Alabama and those of Branson-Missouri. Efforts to reduce visions to plans were soon underway. The concept of a Branson type development in Houston County was floated to the public and drew immediate excitement.

But behind the scenes, among the collaborators, was the issue of gambling. This was Houston County, not Macon County. The collaborators knew there would be public opposition to a casino. All agreed the success of the collaborative effort would depend on generating public enthusiasm for the Country Music/Branson-Missouri theme while discretely devising a resolution that would effectively grant Ronnie Gilley Properties, LLC a government sanctioned monopoly to operate an "electronic bingo" hall. The collective wisdom of the collaborators was that once the project was up and running the public would see the benefits and would come to support the project.

January 24, 2008, one month prior to the Houston County Commission meeting when the bingo resolution would be enacted, Ronnie Gilley hosted a party. The printed invitations indicated "country music legend" George Jones, "country music superstar" John Anderson and Attorney General Troy King would be present.

The presence of the country music stars and Alabama's Attorney General was an impressive display of Gilley's contacts. The presence of the Attorney General lent credibility to the recurring message of legality of the proposed bingo pavilion.

The connection to Attorney General King also led to a referral to attorney Kenneth Steely. Steely had previously worked as a staff attorney in the AG's office under King. He was known to insiders at the AG's office as the "guru" on gambling. Steely and King were close. Steely had been manager for Troy King's reelection campaign. After leaving the AG's office Steely was a registered lobbyist for gambling magnate Milton McGregor.

The county commission by-passed the services of County Attorney Gary Sheerer and retained Steely to come up with a legal strategy for drafting a bingo resolution that would enable the Houston County Commission to grant Ronnie Gilley Properties, LLC a monopoly to operate "electronic bingo" in Houston County. That the Steely "opinion" may have been sought, not as legal advice, but, to provide a color of authority is suggested by the date of the final draft, February 25, 2008, the same date the commission was meeting to enact the bingo resolution.

The Steely "opinion letter," like the 2004 pronouncement of Troy King, was devoid of generally accepted legal analysis.

Houston County Bingo Resolution

February 25, 2005, at 10:00 A.M., Chairman Culver called the commission meeting to order, noting that it was the largest crowd he had seen attend a county commission meeting.

The first item on the agenda was the bingo resolution. The only person to speak in support of the resolution was Mark Culver.

Six prominent members of the public spoke against the resolution and pleaded with the commission to postpone its vote so that the public might have a chance to digest the contents of the eighteen page bingo regulation. Two of those persons, former state representative Riley Seibenhener and businessman John Downs testified they had sought copies of the bingo regulation the previous week but were not provided with a copy until just prior to the meeting that morning.

A review of the minutes of that meeting demonstrates numerous misrepresentations made by Chairman Culver with the intent to mislead the public. He stated "he had asked Attorney Sheerer, County attorney, to investigate... [that] he has done exhaustive research on rulings and opinions." No such 'exhaustive research' was conducted.

Culver displayed a map of bingo halls in Walker County as an example of a county where "without regulation, the expansion of electronic bingo has been rampant." While Mark Culver was working to bring "electronic bingo" into Houston County, legal steps had been under way to rid Walker County of "electronic bingo." By the time Country Crossing opened its doors, all "electronic bingo" operations in Walker County had been closed by court order.

Chairman Culver assured the public the proposed regulation was "an attempt to fill the gap" that "extensive legal research [indicated] electronic bingo can be done if the county does absolutely nothing." He assured the public "the commission is not setting it up for a monopoly but they were setting it up to be difficult for anyone to do this." The truth is there was no "extensive legal research" to back up his assertion. The bingo resolution had but one purpose, to grant Ronnie Gilley Properties, LLC a defacto monopoly to operate a casino under the guise of calling it charitable bingo.

Chairman Culver assured the public the commission did not want to bring class III gambling (slot machines) into Houston County. That is exactly what they did by licensing the Bingo Pavilion. Furthermore, once it became clear that the law was going to be enforced, that the "electronic bingo" operation was illegal, Culver and others began vigorously lobbying the legislature to pass legislation that would legalize the very thing they were trying to convince the public they were trying to "control."

The remaining members of the commission sat silent though all the representations made by Chairman Culver. None of the commissioners spoke. The question was called and the motion carried unanimously.

Two weeks after the passage of the bingo regulation attorney Kenneth Steely was awarded a lucrative contract by his former boss, A. G. Troy King, to perform legal work for the Office of the Attorney General, even though he was a registered lobbyist for Milton McGregor.

There was an immediate outcry from the public. Community leader John Watson tried to persuade chairman Culver as to the illegality of what the commission had done and urged him "to shut it down now, before somebody spends a lot of money out there." Chairman Culver did not listen. Senator Harri Anne Smith and Representative Benjamin Lewis began efforts in opposition to the actions of the commissioners. A delegation of concerned Dothan citizens traveled to Montgomery and complained to the governor.

During the summer of 2008 attorneys on Governor Riley's staff conducted an independent review of Alabama law and determined there was no legal basis supporting Attorney King's statement's that "electronic bingo" was "legally permissible." This led to the split between Governor Riley and King.

December 29, 2008, Governor Riley issued an executive order empanelling the Task Force on Illegal Gambling.

February 10, 2009– concerned how the Task Force on Illegal Gambling might impact plans to develop Country Crossing, a different Dothan delegation, led by Chairman Mark Culver, traveled to Montgomery and met with Governor Riley. At that meeting Governor Riley brought in members of his legal staff who explained in great detail why "electronic bingo" was illegal. It was made clear during this meeting that if an "electronic bingo" parlor were opened at Country Crossing, the Task Force would shut it down.

Undeterred by the meeting with the governor, Chairmen Culver returned to Dothan determined to press forward with the Country Crossing development.

What Chairman Culver did not do was have the county attorney, or any attorney, make contact with the governor's legal staff to assess the legal basis for the governor's position.

Meanwhile, Chairman Culver continued to assure the public the county had "exercised due diligence."

March 19, 2009, the Task Force on Gambling executed a search warrant on Whitehall Entertainment Center in Lowndes County, seizing 105 slot machines, over $500,000 in cash and financial records. This event was widely reported in the news. That same day officials held a ground-breaking ceremony at Country Crossing.

November 13, 2009, the Alabama Supreme Court rendered its decision in Cornerstone Community Outreach ("Whitehall") case. This decision approved the Task Forces search and seizure of the "electronic bingo" machines. It also articulated "six characteristics" of the game of bingo.

November 25, 2009, Commissioner reacted to the Supreme Court's six characteristics of the game of bingo. He initiated a request to Gaming Laboratories International, an "independent laboratory," to obtain certification that the "Bingo Systems" in use at the Bingo Pavilion at Country Crossing were compliant with the six characteristics. However, a careful reading of that request reveals the actual "characteristics" articulated in the body of the request were not the six characteristics articulated in the Court's decision. They were simply a restatement of the existing operating functions of those machines. Thus, the "certification" which Chairman Culver literally waved before the media as he repeatedly assured the public "these machines are legal" provided no such certification.

The Houston County Commission and others bought into the promises of Ronnie Gilley. No one checked his figures or the validity of his projections. No one considered whether there would be any adverse impacts resulting from casino style gambling. Wary of public opposition, they decided to proceed in secret. The history of apparent success with such operations in Macon, Greene and Lowndes Counties along with the tacit support of Attorney General Troy King encouraged them to think the only practical obstacle would be public attitudes in Houston County toward gambling.

Having undertaken a course of deception, they have continued down that course. That many people still express confusion is a testament to the efforts to mislead, rather than enlighten the public. What has been sacrificed in this ends justifies the means collaboration is respect for the truth and the elective process. What our elected officials have produced is a more cynical view of government.

Honesty and trust in elected leaders is what the coming election should be about. We teach our children to be truthful. We should expect the same from elected officials. As voters we are the ultimate shepherds of good government. It is our responsibility to hold elected officials accountable. Ultimately, the government we get will be no better than what we require.

I have taken the trouble to publish this expose because I believe truth matters.

Michael J. Gamble

1. "Electronic Bingo" is a scheme to cloak a slot machine operation with the appearance of legality. Each terminal, or slot machine, operates by linking all active terminals to a central computer processor. The processor applies the logic of a bingo game-- generating "alphanumeric characters," matching those characters with characters on player "cards" and designating winners in the span of six seconds.

2. City of Piedmont v. Evans, 642 So.2d 435 (Ala 1994), Barrett v. State, 705 So.2d 529 (Ala. Crim. App. 1996) and Foster v. State, 770 So.2d 534 (Ala. Crim. App.1997).

3. The Walker County charitable bingo enactment is substantially the same as the Houston County charitable bingo enactment.

4. King had initially served as legal counsel for Governor Riley. Riley's confidence and trust in King led Riley to appoint King to serve as Attorney General when that position was vacated by the appointment of former Attorney General Pryor to a federal judgeship.