The door may have slammed shut on Alabama’s lottery referendum, but gambling opponents should not breathe too deep a sigh of relief.
Alabama is experiencing an increase in video gaming businesses that harbor video gambling machines — due in part to South Carolina courts recently expelling arcade gambling from their state. These machines have been legal in Alabama for several years as a result of the passage of an ambiguous bill that paved the way for a watered-down version of arcade gambling.
The bill, known as the “Chuck E Cheese Law,” tiptoed through legislative approval in 1996 without Gov. Fob James’ signature. The bill was sponsored by former Sen. Dwayne Freeman, D- Madison. The Chuck E Cheese Law, officially known as Alabama Code 13A-12-76, allows for the legal use of “coin operated games for bona fide amusement purposes.”
This law allows for the legal use of video gambling games that reward the player with merchandise, prizes, toys and gift certificates — not to exceed $5 in value per game.
The payoff of choice appears to be $5 gift certificates from Wal-Mart, according to game participants. Although the law states that each payoff cannot exceed $5 in value, players can continue to accumulate points while playing one game with the potential of winning more than $5 worth of certificates per game.
According to Randy Hillman, chief assistant to Shelby County District Attorney Rob Owens, “The difficult part of enforcing this law is in the ability to monitor the amount of merchandise received by the individual by a one-time-play of the game. “In the technical sense of the word these video games are considered gambling,” he said. “The video game owners have managed to carve out a niche in the law so that the operation is legal.”
Hillman points out it is a near impossible task to be able to monitor each gambling machine, to know where they are located and to know if and when the rules are being violated.
Hillman cited a case currently being tried in Shelby County concerning the abuse of video gambling games.
According to Hillman, a social organization was shut down for hosting a large number of video games in their facility where payoff abuse was rampant. The group was investigated after family members of game participants complained to the district attorney’s office about the amount of money their relatives were losing. An investigation revealed game payoffs were not within the specifications of the law. Winners were being awarded payoffs in the form of alcoholic drinks and cash. The establishment was shut down as a result of these violations.
“We have seized a large number of these game machines for being illegally used,” Hillman said.
There have been reports across the state of law officials confiscating video gambling machines for payoff violations.
One Associated Press story that was written in November 1999 mentioned payoff abuse in Jefferson, Calhoun and Montgomery counties.
June 30th marked the end of South Carolina’s video gambling game industry that reached $2.1 billion in wagers and payouts of $1.5 billion in 1999.
Although South Carolina may have rid itself of its gambling epidemic, other Southeastern states are being infested with game machine owners eager to relocate in areas where video gambling is permitted. Alabama’s weak law is a calling card of opportunity for gaming house operators anxious to get back into their moneymaking industry.
In the last few months establishments have opened across the state that hype their business as “adult video game” facilities. Treasure Island Arcade opened its doors a week ago in the Pelham area of Shelby County. The owners leased their machines from a former South Carolina owner. They opted to lease the equipment because of the long wait to purchase them.
Owners of the arcade were visited by staff members of First Baptist Church, Pelham, who initiated the meeting after learning of their presence by a concerned citizen.
Pastor Mike Shaw and worship leader Sam Nugent received a public relations presentation and tour by the owners. There were told that no one under 19 would be allowed to play the games and that no alcoholic beverages would be served. Customers would be served complimentary food and beverages from area restaurants.
“They intend to be opened 24 hours a day except for Sunday mornings,” Shaw said. “When we asked them about any nudity with the games that had been reported to us, they told us they were not going to run those type of games. They readily admitted to us that this type of gambling is addictive. They said that the games were based on skill but in my opinion it’s gambling plain and simple,” Shaw noted.
One new business located in Birmingham’s Center Point area was opened by a former South Carolina video game arcade owner who moved his business to Alabama.
Betty Cannon, a member of Hilldale Baptist, Center Point, and president of the newly established C.P.A.C. (Center Point Action Committee) was appalled at what she saw when she and a friend decided to investigate a video gambling business located in Center Point.
‘Pathetic sight’
“There wasn’t even a sign,” Cannon said. “There were just pictures of fruit cherries, lemons and oranges painted on the windows and some of the older people thought it was going to be a fruit stand,” she said.
“I’ve never seen such a pathetic sight in my life when I walked into that dark room. There were little old gray-haired men and women lined up at all of these machines playing video poker games,” Cannon said.
“You couldn’t see out of the windows to even know if it was day or night. These people were oblivious to what was going on around them,” she said. “It was like they were in a trance. They saw nothing but what was on those machines. I know some of these people will walk out of there without enough money left to buy a loaf of bread.”
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