Alabama Melodrama: VictoryLand Reopens
There might be another showdown coming between casinos and state troopers.
In an apparent dare to anti-gaming Gov. Bob Riley, Victoryland slots casino has reopened in the town of Shorter.
However, the state’s largest slot parlor – 6,400 video bingo machines – pulled a trick it hopes can immunize it from being raided by Riley’s anti-gaming task force.
It has given up its liquor license, which means it no longer can be raided without a search warrant.
Meanwhile, task force chief John Tyson has indicated he might still raid Victoryland. And Alabama’s other slot casinos remain closed.
In other developments:
• GLI has certified that the machines at Victoryland meet the state Supreme Court’s standards for being legal bingo games, AP reported.
And Macon County District Attorney Paul Jones intends to ask a county judge to rule on their legality. Riley, in turn, questioned whether Jones has that authority.
• Analysts have been cutting earnings estimates on Bally, IGT and Multimedia Games because their slots are shut down. Estimates range from 7-10 cents a share for BYI, a similar amount for MGAM and several cents for IGT.
However, Ryan Wurst of Brean Murray believes the sell-off in BYI stock in reaction to Alabama could spell a buying opportunity for investors. Details below in Analyst Action.
• The Mobile Press has come out editorially in favor of a statewide referendum to settle the issue.
Two bills – one in the House and the other in the Senate – would set referendums for voters to amend the state constitution to allow the slots. The legislature has until its April 26 adjournment to act.