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

The city council recently repealed a controversial bingo ordinance that had drawn scrutiny from State Attorney General Steve Marshall. While the funds are now accessible, a temporary restraining order remains in place for seven more days until litigation concludes.

The controversy centers around Jay's Charity Bingo, an electronic bingo parlor that Marshall claims was operating illegally. State authorities raided the establishment twice:

• In August, discovering stolen gaming machines still bearing "state evidence" stickers
• In November, after the facility reopened, leading to legal action against the city

The AG's Office alleges the city transferred over $200,000 from bingo operations to its general fund last month, which they consider proceeds of crime. Deputy Attorney General John Kachelman argues these funds should be seized by the state.

City officials are divided on the issue. While some council members blame Mayor Tonja Baldwin for authorizing continued operations without approval, supporters argue the city of 2,000 residents desperately needs the revenue. Jefferson County Commissioner Sheila Tyson noted that local tax revenue alone is insufficient to maintain city operations.

The Alabama Supreme Court ruled in October 2022 that only traditional bingo games are legal in the state, prompting increased enforcement against electronic bingo operations.

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