A federal judge has ruled that Hitchcock, Texas, cannot sue Galveston County to recover more than $720,000 seized by authorities over allegations that the money was connected to illegal gambling. The amount represents approximately 9% of the city’s annual budget.

Hitchcock filed the lawsuit after Sheriff Jimmy Fullen’s office confiscated approximately $721,000 from the city’s general fund bank account on June 24.

In its complaint, the city argued that the seizure “has caused an immediate, severe emergency, threatening the City’s ability to pay for essential services and maintain public safety.” Officials also stated that Hitchcock lacks an available credit line or other means of quickly replacing the seized funds.

Constitutional Rights at the Center of the Dispute

Hitchcock maintained that the seized money consisted of public funds rather than proceeds from illegal gambling. The city alleged that the sheriff’s office violated its Fourth and Fourteenth Amendment rights by seizing the funds without probable cause. It also argued that sovereign immunity protects public money held for governmental purposes.

However, U.S. District Judge Jeffrey Brown dismissed the lawsuit, citing a restriction under the federal civil rights statute, 42 U.S.C. § 1983. The judge explained that “one governmental subdivision may not sue another subdivision” under the law.

What Are Eight-Liner Machines?

Hitchcock has a history of overseeing eight-liner machines and other amusement gaming devices through a municipal permitting system.

Eight-liners are slot machine-style devices commonly found in Texas game rooms. Players wager on multiple paylines and accumulate credits that can potentially be exchanged for prizes. Although operators frequently describe these machines as legal amusement devices, courts have increasingly determined that many violate Texas gambling laws.

Following an investigation into alleged illegal payouts and related criminal activity, the Galveston County Sheriff’s Office raided several locations throughout Hitchcock in February. The operation led to dozens of arrests and the seizure of hundreds of gaming machines.

Hitchcock Mayor Arrested in Gambling Investigation

Hitchcock Mayor Christopher Armacost was among those charged after authorities allegedly discovered illegal gambling machines inside a laundromat he owns in the city. He faces a felony charge of engaging in organized criminal activity, which he denies.

According to court records, undercover deputies who played the machines at Armacost’s establishment received printed tickets showing 40 and 70 credits. The deputies were subsequently able to exchange those tickets for cash.

In 2022, the Second Court of Appeals in Fort Worth ruled that eight-liner machines fall within the Texas Constitution’s definition of an illegal lottery because they involve three essential elements: chance, consideration, and a prize. The court determined that the form of the winnings—whether cash, credits, or merchandise—did not change that conclusion.

Ongoing Dispute Over Texas Gaming Rooms

The legality of eight-liner establishments has been a longstanding source of conflict across Texas.

Some municipalities have issued permits and regulated these businesses as local amusement venues. However, many sheriffs and prosecutors maintain that local authorization cannot override state gambling laws. As a result, law enforcement agencies have increasingly targeted game rooms and seized machines suspected of facilitating illegal gambling.