Some Birmingham City Council members want to delay vote on bingo applications
Posted by mperrin August 02, 2009 05:35AM
Three Birmingham city council members, including the council president, want to delay voting on bingo permits until the ordinance is clarified.
Birmingham Councilwoman Valerie Abbott plans to introduce a proposal calling for a moratorium on granting permits Tuesday – the same day that the council is scheduled to consider 17 applications, most from groups that want to operate electronic bingo halls. Abbott wants to wait until a court rules on the legality of bingo.
The hearings set for Tuesday are the first on bingo applications since the council in June approved an ordinance legalizing the electronic, casino-style version of the games.
Abbott, who opposes gambling and voted against the bingo ordinance, said the city’s rules are sloppy and too open-ended. The only thing clear about the ordinance is that it is unclear, she said.
“The ordinance is so poorly written that it provides no oversight,” she said. “Just all of a sudden we’ll have gambling halls all over Birmingham.”
She said it’s premature to issue permits before court rulings are issued in similar cases.
“The more I thought about it, the less I thought we should be into the full-fledged bingo business until we know if it’s legal or not,” she said. Gov. Bob Riley contends electronic bingo machines are actually illegal slot machines and raided a Lowndes County bingo hall in White Hall this year in a effort to get the matter before the state Supreme Court. Attorney General Troy King has disagreed with Riley, saying bingo can legally be played electronically in some locations, depending on some constitutional amendments and local laws.
Council President Carole Smitherman and Councilor Steven Hoyt also say it is premature to consider bingo applications while legal issues remain unresolved.
“The bingo advocates have rushed the ordinance,” said Smitherman. “It has always been my position that we should wait until the state Supreme Court rules on the legality of this whole issue. Right now the whole industry is in a state of confusion because the court has not ruled.”
Smitherman said the city also needs guidelines to control where bingo halls are allowed. She and Abbott said they want assurances that residential areas will be buffered from bingo halls.
Smitherman said she was incensed after seeing a proposed location in the Heritage Towne Center in southwest Birmingham at the site of a former grocery store. Smitherman has advocated recruiting another store go at that location.
“We need a grocery store,” she said. “We don’t need a bingo hall.”
Hoyt said the city right now doesn’t “have a good enough document to safeguard the citizens and well as the city.”
The ordinance allows charity groups to operate electronic bingo at sites with at least 500 machines. Owners of the machines will to pay the city a fee of $100 per month per machine until January 2011, when the fee will jump to $2,000 per machine each year. Beginning in January, charities that run electronic bingo will pay 15 percent of their proceeds to the Birmingham Board of Education.
The ordinance defines proceeds as the money left over after machine rental, prizes, rent, utilities and other expenses are paid.
Ordinance problems
Abbott says the ordinance is full of holes.
For instance, the council is responsible for writing any rules needed to govern the games, but no action has been taken to do so. Abbott said rules are needed before permits are issued.
Also, there is no provision explaining how the 15 percent for education is transferred from the city over to the school board.
In Mississippi, electronic games are charged a 2.5 percent fee on the machines’ proceeds under state law. The fees are collected whether monthly or quarterly, depending on the size of the organization. Machine distributors and operators each also pay a $50 fee per machine per month, and they must pay one-time license fees. Manufacturers and distributors each pay a one-time fee of $2,500 per machine, while operators pay a one-time fee of $1,500 per machine.
In other words, one machine in Birmingham would, in 2011 and thereafter, generate $2,000 a year in basic fees, while a similar machine in Mississippi generates a one-time fee of $6,500 and annual fees of $1,200. The operation housing that machine would pay 15 percent of proceeds after expenses in Birmingham, and 2.5 percent in Mississippi.
Mayor Larry Langford, who favors bingo, has also criticized Birmingham’s ordinance. Last week he asked the council to amend the ordinance to increase the minimum number of machines required to open a hall. He said that would temper the proliferation of bingo into communities. The council rejected his request.
Langford has called it unfair to require groups to pay fees and taxes to the city for an activity that might be declared illegal.
“We ought to seek to get this one right. It doesn’t contain what I thought it should contain,” Langford said.
Jefferson County District Attorney Brandon Falls had asked the council to delay taking any action related to bingo until the legal question is settled in court. He later predicted that most of the electronic machines would be ruled illegal under state law.
While the bingo ordinances have not yet gone into effect, there are already bingo halls operating in the city. The VFW, among others, already operates a bingo hall in Roebuck, under a restraining order preventing Birmingham police from shutting them down.
News staff writer Kim Chandler contributed to this report.
