Court: Alabama bingo operator owes $76 million

MONTGOMERY, Ala. — The Alabama Supreme Court on Thursday ruled that Greenetrack owes $76 million in unpaid taxes and interest in a decision that accused the dog track of using charities as a sham for a profitable electronic gambling operation.

Justices sided with the state Department of Revenue, which contended that Greenetrack’s bingo operation was not in compliance with the constitutional amendment authorizing charity bingo games in the county. Thus, they said, bingo receipts were subject to state sales tax and other taxes.

A state constitutional amendment allows non-profit organizations in Greene County to offer bingo games. Greenetrack leased parts of its bingo operation to charities — paying them $4,850 a day — while

Greenetrack kept the rest of the profits, justices wrote.

“For the low cost of $4,850 a day, Greenetrack was able to use the nonprofit organizations’ licenses as a fig leaf for its own illegal — but extremely profitable — bingo activities,” justices wrote.

The decision reversed an earlier ruling by a state tax tribunal and a circuit judge that ruled in favor of Greenetrack. Circuit Judge William E. Hereford ruled in 2021 that a 1975 dogracing statute exempted Greenetrack from certain taxes, and the state was trying to ignore that by speculating on legislative intent.

A lawyer representing Greenetrack did not immediately return an email seeking comment.

The ruling came after a more than decadelong fight with the state. Alabama Attorney General Steve Marshall praised the decision.