168 So. 3d 4
Ala.2014Background
- Law-enforcement executed a search warrant at Center Stage Alabama (a bingo facility) on July 25, 2012 and seized 691 electronic gaming devices/servers, three Roubingo tables, $288,657.68 in cash, and business records; State filed a civil forfeiture under § 13A-12-30.
- Houston County Economic Development Authority (HEDA), operator of Center Stage, intervened; machines were leased and bore county "machine-bingo" stamps under a county resolution implementing Amendment No. 569.
- Trial was a three-day bench trial with live testimony, depositions (including HEDA’s expert), and video of play; trial court found devices and Roubingo tables were illegal gambling devices and ordered forfeiture and disposition.
- HEDA appealed, arguing (1) Amendment No. 569, implementing statute, and county resolution exempted the devices from forfeiture; (2) prior bond-validation judgment validated the electronic operation; (3) devices actually played lawful "bingo" as defined by Alabama precedent; and (4) cash/records were not shown to be tied to illegal gambling.
- The Supreme Court applied the Cornerstone framework (six minimum characteristics of the traditional bingo game) and affirmed: the electronic terminals and Roubingo tables did not meet those characteristics, so they were subject to forfeiture; cash and records were also forfeitable as connected to illegal gambling.
Issues
| Issue | Plaintiff's Argument (HEDA) | Defendant's Argument (State) | Held |
|---|---|---|---|
| Whether seized devices played lawful "bingo" under Amendment No. 569 | Devices (including electronic depictions of cards and networked play) are bingo; county resolution authorizes electronic equipment and stamps | Devices eliminate core human elements of traditional bingo (physical cards, caller, sequential draws, daubing, group competition) | Devices and Roubingo do not constitute the traditional game of bingo; forfeiture affirmed |
| Whether county resolution/implementing statute insulated devices from general antigambling forfeiture | §45‑35‑150.15 and the county resolution classify electronic equipment as lawful bingo equipment, exempting them from other penalties | Constitutional amendments and Cornerstone control; statutory/resolution definitions cannot expand the constitutional exception to cover devices that are not the traditional game | County resolution/statute cannot protect devices that are not actually the traditional bingo game; exemption inapplicable |
| Whether prior bond‑validation judgment conclusively validated HEDA’s electronic operation | Bond‑validation judgment for project financing that referenced fees on "charity bingo machines" conclusively validated the legality of the machines under §11‑81‑224 | Bond validation only concerned validity of obligations/revenue streams, not legality of specific gaming devices | Bond‑validation judgment did not preclude litigation over whether the devices were lawful; not dispositive |
| Whether seized cash and records were subject to forfeiture | Cash/records were ordinary business assets and not proven to be proceeds or instrumentalities of illegal gambling | Cash was seized from registers/vaults tied to operations; records documented gambling activity and winnings | Trial court’s factual finding that cash and records were connected to illegal gambling is supported; forfeiture proper |
Key Cases Cited
- Barber v. Cornerstone Cmty. Outreach, Inc., 42 So.3d 65 (Ala. 2009) (defines "bingo" as the traditional game and sets out elements for analysis)
- Riley v. Cornerstone, 57 So.3d 704 (Ala. 2010) (recognizes physical cards and traditional, non-electronic play in bingo analysis)
- Ex parte State, 121 So.3d 337 (Ala. 2013) (applies Cornerstone elements and distinguishes electronic marking machines where amendment expressly permits them)
- Smith v. Muchia, 854 So.2d 85 (Ala. 2003) (explains ore tenus standard of appellate review for bench trials)
- Hagan v. Commissioner's Court of Limestone County, 160 Ala. 544, 49 So. 417 (Ala. 1909) (principle that constitutional language is to be given common-sense meaning)