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What does this mean for other Alabama bingo halls? What’s more clear is that the state is serious about enforcing its interpretation of the numerous laws governing bingo. Whether this $76 million tax bill will mean the facility’s closure is uncertain. That’s now a failed argument regardless of its merits. Greenetrack also pointed to charitable contributions it has made over the years. That’s where Greenetrack came in.Īccording to Jason Morton of the Tuscaloosa News, Greenetrack argued it was not liable for sales taxes because it merely provided the facilities for its nonprofit partners to actually operate the games. The law allows nonprofits with charitable arms to offer bingo games as a way to raise funds. Thus, there are several amendments in the state’s constitution that contain language unique to certain counties regarding charity bingo.Īmong those counties is Greene County, where Greenetrack has operated. Alabama has a unique legislative system in which county-specific laws must pass through the state’s legislature. Gambling laws, like many other aspects of life in Alabama, are local. The Supreme Court’s ruling stated that Greenetrack’s contracts with nonprofits “did not immunize it from taxes.” Greenetrack operated its bingo games under a series of laws that might now be read in a different light. Marshall claims that in 2007, Greenetrack distributed just 2.5% of the total take to its charity partners while keeping the balance of almost $69 million. “Illegal gambling enterprise under a scheme that employed a revolving slate of nonprofit organizations.” Marshall called Greenetrack’s bingo games an, The state came up with that number through an assessment of Greenetrack’s bingo operations, with fines and interests. Steve Marshall, the judgment against Greenetrack comes to $76 million. The Alabama Supreme Court has officially weighed in.Īccording to Alabama Atty. Over 10 years after the state originally sued Greenetrack for what it argued constituted illegal gambling and tax evasion, there are no more appeals possible. Greenetrack Alabama court ruling means $76 million back-taxes bill The ruling could have impacts beyond the back-taxes bill for Greenetrack, though. The state’s highest court has ruled that the charity component of Greenetrack’s electronic bingo operations does not exempt the business from tax obligations. That’s been the heart of the issue in a recent Greenetrack Alabama court ruling. While the state is void of most forms of legal online gambling, electronic bingo is a popular way to play in some parts of the state.
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Alabama gambling law could be its own course at any number of law schools across the United States.