The City of Lipscomb, Alabama can now pay its employees after the state Attorney General's Office released $107,000 from previously frozen city accounts. The funds were initially blocked due to allegations of illegal gambling operations.

The city council voted to repeal its controversial bingo ordinance on Monday, though a temporary restraining order remains on the accounts for seven more days while litigation concludes.

The conflict arose when Attorney General Steve Marshall accused the city of licensing Jay's Charity Bingo, an electronic bingo establishment, and receiving illegal gambling funds. Marshall has consistently maintained that electronic bingo is "a menace to public health, morals, safety, and welfare."

Following an Alabama Supreme Court ruling in October 2022 that only traditional bingo games were legal, the AG's Office conducted two raids on Jay's Charity Bingo:

• Late August: Discovered stolen machines with "state evidence" stickers still attached
• Late November: Raided the reopened facility and sued the city for complicity

The situation grew more complex when Deputy Attorney General John Kachelman revealed the city had transferred over $200,000 from the bingo account to its general fund last month, funds he claims are proceeds of crime.

Lipscomb, a city of just over 2,000 residents, faces significant financial challenges. Mayor Tonja Baldwin defended the bingo operations, citing the city's financial needs. Jefferson County Commissioner Sheila Tyson noted that local tax revenue alone is insufficient to maintain city operations, highlighting the broader economic struggles facing this small Alabama community.

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