Alabama Gambling Venues Implement Workforce Reduction Due to State Supreme Court Decision
Alabama's casinos in Macon and Lowndes counties were instructed by the state's top court to halt their charitable gaming activities by January 15, leaving hundreds of employees jobless.
In September, the Alabama Supreme Court, in a unanimous decision, overturned lower court rulings that considered the charitable gaming casinos in the two counties legal. The nine justices determined otherwise, ruling that Victoryland in Shorter, White Hall Entertainment Center, and Southern Star Entertainment Center in Hayneville are breaking the state's gambling laws.
Alabama largely prohibits gambling. The only legal forms of gambling in the state are pari-mutuel betting, certain types of charitable gaming, and tribal casinos run by the Poarch Band of Creek Indians.
Alabama governors have declined to sign a Class III gaming agreement with the tribe to allow its Wind Creek casinos to offer Vegas-style slot machines and table games. Therefore, the three Wind Creek Alabama casinos only provide Class I and II gaming, which primarily consists of bingo-based gaming.
Voters in Lowndes and Macon counties passed local referendums allowing charitable gaming casinos in 2000 and 2003. These ballot approvals gave legal ground for Victoryland, White Hall, and Southern Star to conduct charitable gaming, with their monthly gaming earnings donated to local nonprofits.
Lost Jobs
The Alabama Supreme Court accepted a lawsuit against the three charitable casinos filed by state Attorney General Steve Marshall (R). The state's chief legal officer contended that the gaming operations at Victoryland, Southern Star, and White Hall exceeded what the legislature aimed to approve in 1980 when Alabama's charitable gaming law was passed.
The court concurred. In its ruling, the court concluded that the gaming machines at the three casinos represented "illegal gambling activities." The court ordered the casinos to shut down their gaming terminals by January 15.
The casinos have since let go of hundreds of employees. Approximately 200 employees were terminated at Southern Star and White Hall. Victoryland announced this week that it had dismissed "several hundred employees."
People may lose their homes and cars because they can't find employment," state Rep. Kevin Lawrence (D-Hayneville) told The Birmingham News.
โItโs an area where we donโt really have the opportunity to decide what kind of industry can come to our small, rural county. So, any industry that shuts down, the economic impact is felt severely,โ Lawrence added.
State's Bingo Definition
The Alabama Supreme Court's ruling solidifies the state's 1980 charitable gaming law to mean that bingo involves only the traditional gameplay of numbers being announced and players marking their cards. Electronic bingo-based gaming machines like the ones inside the now-closed Macon and Lowndes casinos, the state contends, do not fall under the category of charitable gaming.
Lawrence hopes to initiate a discussion in the legislature once the state's legislative session begins in March. The aim would be to pass legislation classifying electronic bingo machines as eligible charitable gaming devices.
In the meantime, the more than 500 casino workers terminated this week have been advised to contact the Alabama Department of Labor to discover new job opportunities.
