Federal judge dismisses lawsuit over seizure of alleged city gambling licensing funds in Texas

Federal judge dismisses lawsuit over seizure of alleged city gambling licensing funds in Texas

The City of Hitchcock had sued the Galveston County Sheriff’s Office in a bid to recover $721,000 seized from its general fund bank account

US. Thr US District Court for the Southern District of Texas has dismissed a lawsuit related to funds seized in a gambling probe.

The City of Hitchcock had sued the Galveston County Sheriff’s Office and Sheriff Jimmy Fullen in a bid to recover approximately $721,000 seized from its general fund bank account on June 24. The funds were taken during a county investigation into alleged illegal gambling operations.

Hitchcock had claimed the seizure violated its rights under the Fourth and Fourteenth Amendments and lacked probable cause. It argued that the loss threatened basic municipal functions, including street repairs, drainage infrastructure, and police protection, and noted that the amount represented close to 9 per cent of the city’s annual operating budget with no immediate line of credit available to replace it, but judge Jeffery Brown has ruled that one governmental body cannot sue another under 42 U.S.C. Section 1983.

The seizure stemmed from a Galveston County probe into eight-liner gaming machines, devices that resemble slot machines and have been ruled illegal gambling devices by Texas courts when they offer cash payouts. Earlier raids on game rooms in Hitchcock resulted in dozens of arrests. Among those charged was Mayor Christopher Armacost, who faces a felony count of engaging in organised criminal activity related to machines in a laundromat he owns. Armacost has denied the allegations.

At a February news conference, Fullen alleged the city had received roughly $800,000 to $900,000 annually from illegal gambling operations that allegedly formed part of its budget.

City officials claim that the funds that were seized were derived from lawful sources, specifically property tax revenue, and not from licensing fees, which they stated had already been allocated.

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