FBI investigating Alabama lawmakers on bill to legalize electronic bingo casinos

By Phillip Rawls, AP
Friday, April 2, 2010

FBI probes Alabama lawmakers on bingo casino bill

MONTGOMERY, Ala. — The FBI is investigating possible public corruption involving Alabama lawmakers’ handling of a bill that could legalize electronic bingo casinos.

It’s the latest development in an issue that has set off angry rallies at the statehouse and caustic exchanges between political leaders.

Republican Gov. Bob Riley, who opposes the measure, set up a task force a year ago to halt the spread of the casinos. The middle-of-the-night raids stirred racial tensions as black leaders were angered their communities were stripped of jobs and tax revenue.

Now electronic bingo supporters are questioning whether the federal probe was publicly disclosed to put a chill on the legislation that has been pushed by Democrats.

The measure cleared the Senate this week. Afterward, Riley called it “the most corrupt piece of legislation ever considered by the Senate.” Two days later, the federal probe was announced, with Riley critics promptly saying it seemed politically motivated.

Riley said Friday the investigation was being run by the federal government and he has nothing to do with it.

“It really is somewhat silly to say the governor’s office would have any influence or control of an FBI investigation,” Riley said.

State investigators have been involved, though, according to a lawyer for casino lobbyist that was questioned as part of the probe. Attorneys for Jarrod Massey, who lobbies for the now-closed Country Crossing casino, said an investigator from the Department of Public Safety and two FBI agents interviewed Massey after the Senate narrowly passed the bingo bill Tuesday night.

The bill still needs approval in the House. If passed, it would allow Alabama voters to choose whether they want the bingo casinos.

“It smells of a desperate attempt to keep Alabama from getting this issue,” one of Massey’s attorneys, Brett Bloomston, said of the probe.

Senate Majority Leader Zeb Little agreed.

“The governor is using everything in the book to deny the people the right to vote,” said Little, one of six key lawmakers briefed about the federal probe at the headquarters of state Public Safety Director Chris Murphy, a Riley appointee.

Murphy said in a statement he was asked by the FBI to call the legislative leaders to the meeting with Justice Department officials. He said the federal officials sought his involvement because they did not know Alabama’s legislative leaders and wanted to use his office because it was more discrete than meeting at the Statehouse.

Details and the scope of the investigation have not been released, but a Republican legislator who also attended the briefing said the investigation was legitimate.

“They said they had substantial evidence that there was public corruption involved in the bingo issue. They said it was not a fishing expedition, and they would appreciate our cooperation,” said Senate Minority Leader Jabo Waggoner, a Republican.

Electronic bingo arrived in the ’90s and proliferated over the past several years, first with modest casinos, then with the rise of glittering gambling halls at luxury hotels and spas. Casino operators invested more than $500 million last year to develop tourist destinations.

The governor contends the electronic devices are essentially slot machines, which are illegal in Alabama.

Meanwhile, The Associated Press reported that Riley’s political action committee received $10,000 from a lobbyist who represents one of the business interests of Alabama’s Poarch Creek Indians, whose federally protected casinos stand to profit from a shutdown of electronic bingo halls.

The lobbyist, former Republican Lt. Gov. Steve Windom, said the governor asked him to make the donation “for no particular purpose.”

William Stewart, retired professor emeritus in political science at the University of Alabama, said the PAC creates a potential conflict of interest.

“If you would like to do business with the state, you would want to contribute,” he said. “You would want to stay on cordial terms.”

Riley aides said the governor and Windom had known each other for years and that Windom had many clients besides the American Indians, who operate three casinos and a dog track.

“If anyone has the idea the governor is doing anything to help any gambling interests, well that’s just ridiculous. He’s always opposed gambling,” Emerson said.

Associated Press writers Kendal Weaver and Bob Johnson contributed to this report.

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