Good news from Texas.
From the Austin American-Statesman, Saturday. Dec 6
"A new state law regulating bingo games has been declared unconsititutional
by U.S. District Judge James Nowlin, clearning the way for American
Bingo Gaming Corp. of Austin to remain in the bingo hall business in
Texas.
American Bingo under the law would have been prohibited from expanding
its bingo hall business and would have had to get out of the business
altogether by 2001. The compnay has two bingo halls in Austin and
one each in San Antonio and McAllen.
The state law in question required any firm renting halls and furniture to charities sponsoring bingo games to be incorporated in
Texas and privately held. American Gaming, which operates in Texas
through subsidiaries Texas Charities Inc. and American IV Inc., is
incorporated in Delaware and its stock is publicly traded.
Nowlin said he was left with no alternative but to declare the law unconsititutional,
calling it the product of 'provincial political pressures'.
American Bingo challenged amendments to the state Bingo Enabling Act
that were passed this year by the Texas Legislature and signed into
law by Gov. George W. Bush.
..
Noting that the state defended the new law as a tool for strict regulation
of gambling to "halt the growth of the bingo industry as a for-profit
venture," Nowline said, "by law, there is no for-profit bingo in Texas.
The games may only be conducted by nonprofit organizations."
He said the state's argument was "at best misplaced or misguided"
in stating that it intended for "bingo dollars to go to those who
are in need, not to Wall Street investors".
American Bingo challenged the saw, saying it violated the U.S. Constitution
by hampering inter-state commerce and denying the company equal protection
under law.
..
Greg Wilson, president of American Bingo, said he was pleased with the
ruling and "we expect to continue to operate in Texas and hopefully
expand as opportunities present themselves."
Ward Tisdale, a spokesman for the Texas attorney general's office, said
the office will review the case before determining whether to appeal it." |
