Local attorney questions legal basis for bingo license refund

A Dothan attorney believes no legal basis was ever established for Houston County to return almost $882,000 in bingo machine license revenue to the entity that controls bingo at Country Crossing, and has asked a judge for permission to file a brief in connection with the case.

Michael Gamble filed a motion with Circuit Judge Robert Harper, who was appointed to oversee the case involving the Houston County Commission and the Houston Economic Development Association (HEDA), asking Harper to allow him to file a friend of the court brief with the case.

The filing comes in response to a consent judgement reached this week in which the Houston County Commission agreed to return $882,000 of the license fees paid by HEDA to Houston County for the operation of bingo. The county will keep $120,000 and HEDA will receive a $400,000 credit toward the payment of the license fee in 2011.

Gamble said he is asking to file the brief because he believes HEDA never made a legal case that Houston County was obligated to return the money. Gamble said he also wanted to explore whether there was an 'arm's length transaction' between the two parties.

"I don't see where the parties have alleged that there is a liability on the part of the county to pay this back," Gamble said. "The county's obligation is first to represent the citizens of this county, and, if there is no legal reason for the county to pay this money back, then why would you expect the county to refund the money?"

The motion was officially filed Wednesday. The judge has discretion on whether to allow Gamble to file the brief.

Houston County Commission chairman Mark Culver and Country Crossing attorney Will Matthews declined comment on the motion.

"The only equitable basis for requiring a refund of the license fee is a determination that the activity authorized by the grant of the license (electronic bingo) is illegal. Neither party has asserted a factual basis that justifies the refund of the license fees at issue in this case," Gamble states in his motion. "Rather, both parties continue to maintain that the activity authorized by the license is legal. More specifically, neither have asserted illegality as a basis for refunding the license fees. Given the lack of merit to the claim for refund of the license fees, there exists the real possibility the parties are attempting to utilize the equitable jurisdiction of this court to accomplish what they are prohibited by law to do."

In court filings related to the case, HEDA claimed it was due a refund of the license fee due to a "mutual mistake of fact" by both parties, resulting in an unjust enrichment for the county. HEDA claimed that both it and Houston County were under the impression that electronic bingo would be able to operate free and clear of threat from law enforcement.

Instead, HEDA claimed a third and final attempted raid on the facility by the Governor's Task Force on Illegal Gambling in January forced the facility to shut down to protect the machines from seizure. Therefore, HEDA claimed it is due a refund of the license fees paid to the county.

HEDA officially asked the county for a refund in February. The county placed money in an account controlled by the court and the two parties asked a judge to sort out the matter, resulting in this week's consent judgement.

Gamble said threat of a raid is no legal basis for a refund and that the legality of the raids have been addressed several times by the Alabama Supreme Court. Gamble has previously publicly stated he questions the county's authorization of electronic bingo at Country Crossing.