The city of Hitchcock, Texas, cannot sue Galveston County to recoup more than $720,000 in seized cash, or about 9% of its yearly budget, that police claim are the result of an illicit gambling enterprise, according to a federal judge.

Following the June 24 seizure of approximately $721,000 from the city's general fund bank account by Sheriff Jimmy Fullen's office, Hitchcock filed a lawsuit.

The seizure "has caused an immediate, severe emergency, threatening the City's ability to pay for essential services and maintain public safety," according to the lawsuit.  According to the city, there is no quick financing option or line of credit available to replace the money.

Rights guaranteed by the Constitution

The money, according to the city, was not the results of illicit gaming but rather public funds. It claimed that because the sheriff's office lacked probable cause to confiscate the money and because public funds retained for governmental purposes are protected by sovereign immunity, its Fourth and Fourteenth Amendment rights were infringed.

The federal civil rights act, 42 U.S.C. § 1983, states that "one governmental subdivision may not sue another subdivision," so U.S. District Judge Jeffrey Brown dismissed the case.

An Eight-Liner: What Is It?

Hitchcock has a history of using city permissions to control "eight-liners" and amusement gaming equipment.

Often seen in Texas game rooms, an eight-liner is a slot-style gaming machine that allows players to spend on numerous paylines and receive credits that can be redeemed for prizes. Courts have increasingly discovered that many of them violate the state's gambling regulations, despite the fact that operators frequently promote them as legitimate amusement devices.

Authorities raided several places in the city in February after the sheriff's office conducted an investigation into illicit payouts and related criminal activities. As a consequence, hundreds of machines were seized and dozens of people were arrested.

The Mayor Was Arrested

Christopher Armacost, the mayor of Hitchcock, was accused after officials discovered what they believe to be illicit gambling machines in a laundry he operates in the city. Armacost is accused of engaging in organized crime, an accusation he disputes.

According to court documents, undercover deputies who used Armacost's machines were given 40 and 70 credits on a printed ticket that they could then exchange for cash.

Because eight-liners include the three necessary components—chance, consideration, and a prize—the Second Court of Appeals in Fort Worth determined in 2022 that they satisfy the Texas Constitution's definition of an unconstitutional lottery. The court ruled that whether winnings were awarded in cash, credits, or items was irrelevant.

Eight-liner game rooms have long been a source of conflict in Texas.

Many sheriffs and prosecutors contend that permits cannot legalize behavior that is forbidden by state gambling laws, and they have been increasingly cracking down on the machines, even though some localities have granted permits and controlled the enterprises as local amusement facilities.