US bingo operators win lawsuit to lobby lawmakers

Texas

Charitable bingo operators can now use proceeds from their games to lobby Texas lawmakers, following a federal appeal court ruling.

The court ruled on Monday that charitable bingo operators can lobby Texan politicians on a host of issues, including gambling.

The full 5th U.S. Circuit Court of Appeals was in agreement that a provision of the Texas Bingo Enabling Act violated free speech rights of non-profit organisations that hold bingo licences. This had previously been decided by a lower court ruling, which the Court of Appeal decided to uphold.

The Act had been in place for over three decades.

The lawsuit was originally filed in 2010 by several organisations, including Veterans of Foreign Wars posts and Elks lodges.

The Texas Lottery Commission was responsible for enforcing the Bingo Act.

The lawsuit filed argued that it was unjust that gambling firms which are run for profit, such as horse and dog racing operators were allowed to use their revenue “to influence the political process” but groups which were not run for profit weren’t allowed.

The lawsuit argued that the provision “skews the process in favour of for-profit businesses,” and thus when Texas politicians consider any gambling-related issues, “the playing field will be heavily tilted in favour of for-profit gambling.”

District Judge Sam Sparks ruled in favour of the charitable groups. However, a panel of three judges of the 5th Circuit sided with the Texas Lottery Commission. The non-profit gambling firms then won the review by the full appeals court.

Anatole Barnstone, an attorney for the charitable groups, said: “The narrow result is each charity now is free to use bingo money to pursue a legislative agenda. It’s the broader thing that’s more important. Now the law is clear the government can’t tell you as a license holder you can’t use your revenue for speech.”

The Texas Attorney General’s office, which argued the case for the lottery commissioners, had no immediate comment Tuesday. It is possible they may appeal the decision to the U.S. Supreme Court.

The ruling affects approximately 1,100 charities that hold bingo licenses.

“We’re thrilled and delighted that the 5th Circuit recognized that small, little charities have the same free speech rights as big corporations,” Mr Barnstone said.

Bills to bring casino gambling to Texas have routinely failed despite being introduced when lawmakers meet every two years.

“That’s really a never-ending battle,” Barnstone said. “That’s one of purposes, to be able to compete, to have an equal voice as horse and dog racing folks do in the Legislature.”