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<p class=3DMsoNormal><a name=3D"#109054"></a><b><span style=3D'font-size:10=
.0pt;
font-family:Arial'>Judge Scott <span class=3DSpellE>Vowell's</span> ruling
allowing sweepstakes at Birmingham Race Course</span></b><span
style=3D'font-size:10.0pt;font-family:Arial'><br>
IN THE CIRCUIT COURT OF JEFFERSON COUNTY, ALABAMA<br>
CIVIL DIVISION<br>
<br>
JEFFERSON COUNTY RACING )<br>
ASSOCIATION, INC. d/b/a THE <br>
BIRMINGHAM RACE COURSE, )<br>
and INNOVATIVE SWEEPSTAKES <br>
SYSTEMS, INC., )<br>
<br>
PLAINTIFFS, ) CIVIL ACTION NO.<br>
CV 05-7684 JSV <br>
v<span class=3DGramE>. )</span> <br>
<br>
MIKE HALE, IN <span class=3DGramE>HIS OFFICIAL )</span><br>
CAPACITY AS SHERIFF OF <br>
<st1:place w:st=3D"on"><st1:City w:st=3D"on">JEFFERSON COUNTY</st1:City>, <=
st1:State
 w:st=3D"on">ALABAMA</st1:State></st1:place>, )<br>
<br>
DEFENDANT. <span class=3DGramE>)</span><br>
<br>
<br>
<br>
DECLARATORY JUDGMENT AND INJUNCTION<br>
I.<br>
THE CASE<br>
This action was brought by the plaintiff, the Jefferson County Racing
Association, Inc., d/b/a the Birmingham Race Course (the Race Course), whose
primary business activity is <span class=3DSpellE>pari</span> <span class=
=3DSpellE>mutuel</span>
wagering on live and simulcast greyhound racing and on simulcast horse raci=
ng
at the Race Course facility located in the eastern area of Birmingham. This
entity has been referred to as Milton McGregor&#8217;s company. The <span
class=3DSpellE>intervenor</span>, who has been aligned by the court as a
plaintiff, is Innovative Sweepstakes Systems, Inc., (Innovative), <span
class=3DGramE>the</span> owner of the gaming equipment which is at the cent=
er of
this litigation. Innovative is a wholly owned subsidiary of Multimedia Game=
s,
Inc., (Multimedia), a publicly traded company, which provides computer
equipment and software to promote gaming activities. The defendant is Mike =
Hale,
in his official capacity as Sheriff of Jefferson County, Alabama. <br>
It is undisputed that the Race Course&#8217;s <span class=3DSpellE>pari</sp=
an> <span
class=3DSpellE>mutuel</span> wagering is legal under current <st1:State w:s=
t=3D"on">Alabama</st1:State>
law, but on December 15, 2005, the Race Course opened a &#8220;<span
class=3DSpellE>CyberCenter</span>&#8221; and began an activity it called &#=
8220;<st1:City
w:st=3D"on"><st1:place w:st=3D"on">Quincy</st1:place></st1:City>&#8217;s
Sweepstakes.&#8221; After six days of operation, deputies of the Jefferson
County Sheriff&#8217;s Department obtained a search warrant and, on December
22, 2005, raided the facility. They began seizing the equipment used to ope=
rate
the Sweepstakes on the grounds that the Sweepstakes constituted an illegal
lottery or gambling scheme. <br>
While the raid was progressing, the Race Course filed this action and sough=
t a
temporary restraining order to require the Sheriff to cease and <span
class=3DGramE>desist</span> the seizure, alleging that the Sweepstakes was a
legal sweepstakes promotion under <st1:place w:st=3D"on"><st1:State w:st=3D=
"on">Alabama</st1:State></st1:place>
law. This court conducted an expedited hearing on the application for a T.R=
.O.
and by agreement of the parties issued a preliminary injunction to preserve=
 the
status quo and to allow the parties to brief and prepare their case for tri=
al.
The court also suspended further operation of the Sweepstakes until the mer=
its
of the case could be considered. Because of the intervening holidays, the c=
ase
was set for trial on January 3, 2006.<br>
On January 3, 2006 the court again heard arguments of counsel and the Sheri=
ff
agreed that he no longer required physical possession of the seized equipme=
nt.
Therefore, the equipment was ordered to be returned to the Race Course and =
the
disputed issue of responsibility for payment of the moving expenses was
reserved by the court. The parties jointly requested additional time to try=
 to
narrow the disputed issues of fact and former Supreme Court Justice Ralph C=
ook
agreed to facilitate their negotiations. The trial was continued for two we=
eks.
<br>
The court conducted a bench trial on January 17 and 18, 2006, and the
stipulated facts were submitted as Joint Exhibit Number 1. As a result, the=
re
are few remaining issues of disputed fact. II<span class=3DGramE>.</span><b=
r>
THE ISSUE<br>
The fundamental issue this Court must decide is the legality of the
Sweepstakes. The Sheriff contends that the Sweepstakes promotion at the Race
Course facility constitutes an unlawful lottery and/or gambling scheme unde=
r <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:State> law. The=
 Sheriff
asserts that the <span class=3DSpellE>CyberCenter</span> being promoted by =
the
Race Course is a &#8220;sham,&#8221; and that patrons are actually paying
consideration for sweepstakes entries. <br>
On the other side, the plaintiffs deny that the <span class=3DSpellE>CyberC=
enter</span>
is a sham and contend that the Sweepstakes is a lawful sweepstakes promotio=
n under
<st1:State w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:Stat=
e> law
because no consideration is required to participate in the Sweepstakes.
Plaintiffs also deny that the operation involves gambling or gambling devic=
es.
Plaintiffs assert that the Sweepstakes is a promotional plan designed to
attract patrons to the Race Course facility, to promote the <span class=3DS=
pellE>CyberCenter</span>,
and to enhance the <span class=3DSpellE>pari</span> <span class=3DSpellE>mu=
tuel</span>
activities, thereby increasing income. Plaintiffs further contend that the =
<st1:State
w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:State> gambling
statutes are unconstitutionally vague as applied to the facts of this case.=
<br>
II<span class=3DGramE>.</span><br>
THE FACTS<br>
In 2005 the Race Course engaged Multimedia to develop a sweepstakes promoti=
on
as part of a marketing plan to promote the Race Course. During the developm=
ent
process, both the Race Course and Multimedia sought opinions from those it
considered to be experts in the area of sweepstakes promotions to help them
determine whether or not their proposed operation complied with applicable =
<st1:State
w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:State> law.<br>
On May 25, 2005 plaintiffs demonstrated the Sweepstakes operation to the
Alabama Attorney General&#8217;s office. After seeing the demonstration and
being furnished with additional requested documentation, the Attorney
General&#8217;s office advised the plaintiffs that sweepstakes promotions a=
re
legal in <st1:State w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place><=
/st1:State>
and that the promotion would be lawful if the Sweepstakes were operated as
demonstrated. The Attorney General&#8217;s office informed the plaintiffs t=
hat
they would give the same opinion if other law enforcement agencies were to
inquire. <br>
The stipulations also reflect that representatives of the plaintiff had dis=
cussions
with the Sheriff and the District Attorney and offered to demonstrate the
Sweepstakes to them prior to beginning operations. The plaintiffs <span
class=3DGramE>proceeded</span> with the promotion plans and the Race
Course&#8217;s Sweepstakes began on December 15, 2005.<br>
During the trial the court was given a courtroom demonstration of the
Sweepstakes at the Race Course. <br>
To play the Sweepstakes at the Race Course, a patron must first open an acc=
ount
to obtain a plastic account access card containing an encoded magnetic strip
similar to that on a credit card. To open an account the customer presents
his/her driver&#8217;s license to a Race Course attendant who scans the lic=
ense
into the Race Track&#8217;s computer system. The patron then receives the
access card at no charge as well as an individual account number similar to=
 a
PIN. Plaintiffs call the card a &#8220;<span class=3DSpellE>Qcard</span>.&#=
8221; <br>
After obtaining the <span class=3DSpellE>Qcard</span>, the patron moves to a
Point of Sale Terminal where he/she may purchase Internet time (<span
class=3DSpellE>cybertime</span>). The sale of <span class=3DSpellE>cybertim=
e</span>
also triggers the system to give the customer promotional Sweepstakes entri=
es.
For each $1.00 spent the patron receives four minutes of Internet time and =
is
given 100 <span class=3DSpellE>MegaSweeps</span> entries, each of which
represents a separate chance to win a cash prize. The rate charged for acce=
ss
to the <span class=3DSpellE>CyberCenter</span> is comparable to rates charg=
ed by
providers of similar computer services and is &#8220;fair market value.&#82=
21;
There is no separate charge for the Sweepstakes entries. <br>
In the <span class=3DSpellE>CyberCenter</span> there are 116 state-of-the-a=
rt
computers. The customer swipes his/her <span class=3DSpellE>Qcard</span> an=
d logs
onto a computer that tracks the amount of Internet time available to the
customer, deducting the used time from the customer&#8217;s account. The
computers provide the customers with broadband Internet connections allowing
the user to browse the Internet, to access email and to obtain many of those
services that are available on the Internet. The <span class=3DSpellE>Cyber=
Center</span>
can also be used to make telephone calls via the Internet, to make copies, =
to
print digital photographs, to send faxes, and so forth. The computers can be
used to gain access to online information about greyhound and horse races a=
nd
the customer can access pari-mutuel tip sheets and other information used f=
or
handicapping live and simulcast racing sites around the country. <br>
As stated, when the customer buys Internet time he/she also gets Sweepstakes
entries in <st1:City w:st=3D"on"><st1:place w:st=3D"on">Quincy</st1:place><=
/st1:City>&#8217;s
<span class=3DSpellE>MegaSweeps</span>. Whether or not the customer has a w=
inning
or losing entry is predetermined at the time the customer purchases Internet
time. Once the customer has been given the Sweepstakes entry, it cannot be
changed and the customer cannot tell by looking at the card whether he/she =
has
drawn a winning entry. The customer may determine whether the Sweepstakes
entries are winners or losers at the <span class=3DSpellE>CyberCenter</span=
>, by
accessing a website remotely, by calling a toll-free telephone number, or by
going to an electronic Reader. <br>
The most popular way to learn the result of an entry is through the use of =
the
more than 1,300 electronic Readers that display winning and losing entries.=
 To
learn the result of an entry from a Reader, the customer swipes his <span
class=3DSpellE>Qcard</span> to activate the Reader and then presses a butto=
n on
the Reader to see the results. The customer may select one entry or a batch=
 of
entries to be read at the same time. <br>
The demonstration and other evidence makes it clear to the court that these
Readers are designed and arranged so that they look and sound like slot
machines at a gambling casino. But while they look, sound and act like a
gambling machine, the evidence shows that they are not gambling machines. T=
hese
machines do not determine who wins or who loses. There is no chance involve=
d.
The Reader simply reads and displays the results of the predetermined
sweepstakes entries. As plaintiff contends, these Readers are &#8220;dumb
terminals&#8221; that only read the electronic entries.<br>
Another machine demonstrated as part of the promotion was the <span
class=3DSpellE>Recharger</span> Kiosk, located near the Readers. This is an
automated station that allows the card holder to purchase additional <span
class=3DSpellE>cybertime</span> and to add <span class=3DSpellE>cybertime</=
span> to
his/her account. If the patron has won a cash prize in the <span class=3DSp=
ellE>MegaSweeps</span>,
he/she can go to the <span class=3DSpellE>Recharger</span> and use those wi=
nnings
to purchase additional <span class=3DSpellE>cybertime</span>. Of course the
customer also gets additional <span class=3DSpellE>MegaSweeps</span> entrie=
s when
he/she purchases more <span class=3DSpellE>cybertime</span>.<br>
The evidence shows that during the brief period the plaintiffs were operati=
ng
the <span class=3DGramE>promotion,</span> few customers were using the <span
class=3DSpellE>CyberCenter</span>; however they were lined up at all hours =
to use
the Readers. It is obvious that most of the customers are more interested in
getting <span class=3DSpellE>MegaSweeps</span> entries than they are in usi=
ng the
<span class=3DSpellE>CyberCenter</span>. This court has no way of knowing w=
hether
the customers think they are playing real slot machines or whether they are
aware that the Readers simply look like slot machines. <br>
The evidence also shows that there are methods under the rules adopted by t=
he
Jefferson County Racing Commission, by which a customer can obtain a free
Sweepstakes entry without making a purchase of <span class=3DSpellE>cyberti=
me</span>.
The customer can request and receive a free entry in the Sweepstakes by mai=
l.
There was also evidence that the plaintiffs plan to offer some <span
class=3DSpellE>MegaSweeps</span> entries to patrons at the Race Course even=
 if
they do not buy <span class=3DSpellE>cybertime</span>. <br>
Once the results of the entries have been read by the Reader the
customer&#8217;s account is updated. When the customer decides to &#8220;ca=
sh
in,&#8221; the customer is paid cash for the winning entries by a cashier. =
<br>
IV<span class=3DGramE>.</span><br>
THE LAW<br>
<br>
A.<br>
LOTTERIES<br>
Lotteries are prohibited in <st1:place w:st=3D"on"><st1:State w:st=3D"on">A=
labama</st1:State></st1:place>.
The Alabama Constitution of 1901 provides<span class=3DGramE>:</span><br>
&#8220;65. Lotteries; prohibited <br>
&#8220;The legislature shall have no power to authorize lotteries or gift
enterprises for any purposes, and shall pass laws to prohibit the sale in t=
his
state of lottery or gift enterprise tickets, or tickets in any scheme in the
nature of a lottery; and all acts, or parts of acts heretofore passed by the
legislature of this state, authorizing a lottery or lotteries, and all acts
amendatory thereof, or supplemental thereto, are hereby avoided.&#8221; <st=
1:State
w:st=3D"on"><st1:place w:st=3D"on">Ala.</st1:place></st1:State> Const. Art.=
 <span
class=3DGramE>IV 65 (1901).</span> <br>
<br>
The Supreme Court has stated that &#8220;the broad conception set forth in
&sect; 65 showing that the prohibition is not only against lotteries but al=
so
against any scheme in the nature of a lottery. The very purpose of this bro=
ad
declaration was to put a ban on any effort at evasion or subterfuge.&#8221;=
 <span
class=3DGramE>Opinion of the Justices No. 83, 31 So.</span> <span class=3DG=
ramE>2d
753, 755 (<st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></s=
t1:place>
1947).</span><br>
<br>
The Alabama Legislature has specifically defined the term
&#8220;lottery:&#8221;<br>
&#8220;(6) <span class=3DGramE>lottery</span> or policy. An unlawful gambli=
ng
scheme in which<span class=3DGramE>:</span><br>
&#8220;a. The players pay or agree to pay something of value for chances,
represented and differentiated by numbers or by combinations of numbers or =
by
some other medium, one or more of which chances are to be designated by the
winning ones; and <br>
&#8220;b. The winning chances are to be determined by a drawing or by some
other fortuitous method; and<br>
&#8220;c. The holders of the winning chances are to receive something of
value.&#8221;<br>
Ala. Code (1975) 13A 12 20(6) (1975) (emphasis added).<br>
<span class=3DGramE>B.</span><br>
GAMBLING AND GAMBLING DEVICES<br>
The promotion of gambling or the possession of a gambling device is also
unlawful under<br>
<st1:place w:st=3D"on"><st1:State w:st=3D"on">Alabama</st1:State></st1:plac=
e> law. <st1:place
w:st=3D"on"><st1:State w:st=3D"on"><span class=3DGramE>Ala.</span></st1:Sta=
te></st1:place><span
class=3DGramE> Code (1975) 13A 12 22 and 27.</span> The Code of Alabama def=
ines
&#8220;gambling&#8221; and &#8220;gambling device&#8221; in relevant part as
follows<span class=3DGramE>:</span><br>
&#8220;(4) gambling. A person engages in gambling if he stakes or risks
something of value upon the outcome of a contest of chance or a future
contingent event not under his control or influence, upon an agreement or
understanding that he or someone else will receive something of value in the
event of a certain outcome....<br>
&#8220;(5) <span class=3DGramE>gambling</span> device. Any device, machine,
paraphernalia or equipment that is normally used or usable in the playing
phases of any gambling activity, whether that activity consists of gambling
between persons or gambling by a person involving the playing of a machine.
However, lottery tickets, policy slips and other items used in the playing
phases of lottery and policy schemes are not gambling devices within this
definition.&#8221;<br>
<br>
13A 12 20(4) and (5) (emphasis added). A slot machine is one form of a gamb=
ling
device. <st1:place w:st=3D"on"><st1:State w:st=3D"on"><span class=3DGramE>A=
la.</span></st1:State></st1:place><span
class=3DGramE> Code (1975) 13A 12 20(10).</span> <br>
The promotion of gambling and the possession of a gambling device both requ=
ire
that &#8220;something of value&#8221; be risked. &#8220;Something of
value&#8221; is defined as<span class=3DGramE>:</span><br>
&#8220;(11) something of value. Any money or property, any token, object or
article exchangeable for money or property or any form of credit or promise
directly or indirectly contemplating transfer of money or property or of any
interest therein, or involving extension of a service entertainment or a
privilege of playing at a game or scheme without charge.&#8221;<br>
<br>
<st1:place w:st=3D"on"><st1:State w:st=3D"on"><span class=3DGramE>Ala.</spa=
n></st1:State></st1:place><span
class=3DGramE> Code 13A 12 20(11).</span><br>
The Alabama Legislature has specifically exempted &#8220;sweepstakes&#8221;
from illegal gambling activities, including a lottery. A
&#8220;sweepstakes&#8221; is defined as &#8220;[a] legal contest or game wh=
ere
anything of value is distributed by lot or chance.&#8221; <st1:place w:st=
=3D"on"><st1:State
 w:st=3D"on"><span class=3DGramE>Ala.</span></st1:State></st1:place><span
class=3DGramE> Code (1975) 8-19D-1(4) (1989).</span> Unlike a lottery, a
&#8220;sweepstakes&#8221; does not include the payment of consideration for=
 a
chance to win a prize. <span class=3DGramE>Pepsi Cola Bottling Co. v. Coca-=
Cola
Bottling <st1:place w:st=3D"on">Co.</st1:place>, 534 So.</span> 2d 295, 296=
 (<st1:place
w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place> 1988)<span
class=3DGramE>.</span><br>
&#8220;The three elements of a lottery are (1) a prize, (2) awarded by chan=
ce,
and (3) for a consideration.&#8221; Pepsi, 534 So. <span class=3DGramE>2d a=
t 296.</span>
See Opinion of the Justices No. 277, 397 So. 2d 546, 547 (<st1:place w:st=
=3D"on"><st1:State
 w:st=3D"on">Ala.</st1:State></st1:place> 1981); State ex <span class=3DSpe=
llE>rel</span>.
Tyson v. Ted's Game <span class=3DGramE>Enters.,</span> 893 So. <span
class=3DGramE>2d 376, 378 (<st1:State w:st=3D"on">Ala.</st1:State> 2004); G=
rimes v.
State, 235 <st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></=
st1:place>
192, 193, 178 So.</span> <span class=3DGramE>73 (<st1:place w:st=3D"on"><st=
1:State
 w:st=3D"on">Ala.</st1:State></st1:place> 1937).</span> All three elements =
must
be present. &#8220;This three pronged definition of &#8216;lottery&#8217; w=
as
based on definitions of that term used by a vast number of authorities, both
judicial and <span class=3DSpellE>nonjudicial</span>, and it is still accep=
ted by
the overwhelming majority of jurisdictions, as well as the United States
Supreme Court.&#8221; <span class=3DGramE>Opinion of the Justices No. 373, =
795
So.</span> <span class=3DGramE>2d 630, 634 35 (<st1:place w:st=3D"on"><st1:=
State
 w:st=3D"on">Ala.</st1:State></st1:place> 2001).</span><br>
In Pepsi, supra, the Alabama Supreme Court held that Pepsi&#8217;s bottle c=
ap
instant cash promotion did not constitute a prohibited lottery because the
element of consideration was absent. The <span class=3DGramE>court found th=
at,
although the elements of a prize and award by chance were present</span>,
&#8220;the 'Pepsi Instant Cash' game is not a lottery, because participants
were not required to purchase cards in order to play.&#8221; <st1:place w:s=
t=3D"on"><st1:State
 w:st=3D"on"><span class=3DGramE>Id.</span></st1:State></st1:place><span
class=3DGramE> at 297.</span> Moreover, &#8220;[a]<span class=3DSpellE>ny</=
span>
incidental profit or benefit to Pepsi in the sale of the soft drinks contai=
ning
the 'under the crown' chance neither provides the consideration to make the
game a lottery nor negates the free participation aspect of the game.&#8221=
; <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Id.</st1:place></st1:State><br>
Following the Pepsi decision, an Alabama Attorney General concluded that a
promotional program which distributed a tear off &#8220;scratch and win&#82=
21;
game piece with the purchase of a prepaid phone card did not constitute a
prohibited lottery because the element of consideration was lacking. <span
class=3DGramE>Op. <span class=3DSpellE>Att&#8217;y</span> Gen. 99 28 (1998)=
.</span>
In return for $1, the purchaser of a phone card received two minutes of pre=
paid
long distance service. Each two-minute phone card contained a tear off
&#8220;scratch and win&#8221; game piece that gave the purchaser the
opportunity to win a monetary prize ranging from $1 to $50,000. In addition=
 to
selling the phone card, the company made game pieces available for free to
consumers at certain retailers, or by mailing a self addressed, stamped
envelope to the company. The Attorney General acknowledged that the proposed
program satisfied the prize and award by chance elements of a lottery, but
concluded that because the program &#8220;allows for the free distribution =
of
game chances through a mail in option,&#8221; there is no element of
consideration<span class=3DGramE>:</span><br>
&#8220;A plan that offers game pieces in conjunction with the purchase of a
product, like the Phone Card plan proposed, must also provide for free
distribution of game pieces or it will be deemed a lottery. . . . The Phone
Card program proposed, which allows for the free distribution of game chanc=
es
through a mail in option, does not constitute a prohibited lottery.&#8221; =
<span
class=3DGramE>Op. <span class=3DSpellE>Att&#8217;y</span> Gen. 99 28 (1998)=
.</span>
<br>
<br>
Although lotteries are forbidden in <st1:State w:st=3D"on"><st1:place w:st=
=3D"on">Alabama</st1:place></st1:State>,
sweepstakes are not. Section 65 of the Alabama Constitution &#8220;does not
prohibit the Legislature from authorizing gambling.&#8221; <span class=3DGr=
amE>Opinion
of the Justices No. 373, 795 So.</span> <span class=3DGramE>2d 630, 641 (<s=
t1:place
w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place> 2001).</spa=
n> Even
before the adoption of the Alabama Constitution of 1901, a distinction was =
made
between lotteries and sweepstakes. See Yellow-Stone Kit v. State, 88 <st1:S=
tate
w:st=3D"on"><st1:place w:st=3D"on">Ala.</st1:place></st1:State> 196, 7 So. =
<span
class=3DGramE>338 (1889); <span class=3DSpellE>Buckalew</span> v. State, 62=
 <st1:place
w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place> 334, 335 36=
 (1878).</span>
The Alabama Legislature recognized the historical legality of sweepstakes in
Section 8-19D-1(4) &#8211; where the payment of consideration for a chance =
to
win a prize is lacking. <span class=3DGramE>See, e.g., Pepsi, 534 So.</span=
> <span
class=3DGramE>2d 295; Op. <span class=3DSpellE>Att&#8217;y</span> Gen. 99 28
(1998); Op. <span class=3DSpellE>Att&#8217;y</span> Gen. 2005 173 (2005).</=
span><br>
<span class=3DGramE>V.</span><br>
PRINCIPLES OF INTERPRETATION<br>
<br>
In determining the legality of the <st1:place w:st=3D"on"><st1:City w:st=3D=
"on">Quincy</st1:City></st1:place>&#8217;s
Sweepstakes, this Court must follow well-settled principles of statutory
construction. &#8220;Words used in a statute must be given their natural,
plain, ordinary, and commonly understood meaning, and where plain language =
is
used a court is bound to interpret that language to mean exactly what it sa=
ys.
If the language of the statute is unambiguous, then there is no room for
judicial construction and the clearly expressed intent of the legislature m=
ust
be given effect.&#8221; Ex parte Bertram, 884 So. <span class=3DGramE>2d 88=
9, 891
(<st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place>=
 2003)
(internal quotes and citation to authority omitted).</span><br>
This Court will not invade the province of the Alabama Legislature by decla=
ring
an activity illegal when the Legislature has not defined that activity as
illegal. It is not within the domain of any Court to usurp the authority of=
 the
Legislature or to infringe upon the exercise of legislative power. <st1:Sta=
te
w:st=3D"on"><st1:place w:st=3D"on">Ala.</st1:place></st1:State> Const. 1901=
, Art.
III, Section 43:<br>
&#8220;In the government of this state, except in the instances in this
Constitution hereafter expressly directed or permitted, the legislative
department shall never exercise the executive and judicial powers, or eithe=
r of
them; the executive shall never exercise the legislative and judicial power=
, or
either of them; the judicial shall never exercise the legislative and execu=
tive
powers, or either of them; to the end that it may be a government of laws a=
nd
not of men.&#8221; See <span class=3DSpellE>McInnish</span> v. Riley, 2005 =
WL
2403733 (<st1:State w:st=3D"on"><st1:place w:st=3D"on">Ala.</st1:place></st=
1:State>).<br>
<br>
Under the separation of powers section of our State Constitution, Ala. Const
1901, 43, it<br>
is solely within the province of the Legislature to ascertain and determine
when a particular act should be prohibited or declared criminal. Beasley v.=
 <st1:City
w:st=3D"on"><st1:place w:st=3D"on">Bozeman</st1:place></st1:City>, 315 So. =
<span
class=3DGramE>2d 570 (<st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</s=
t1:State></st1:place>
1975); Tolbert v. Tolbert, 903 So.</span> <span class=3DGramE>2d 103, 108 (=
<st1:place
w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place> 2004).</spa=
n>
Neither is it the function of this Court &#8220;to usurp the role <br>
<br>
<br>
of the legislature and correct defective legislation or amend statutes under
the guise of construction.&#8221; <span class=3DGramE>Employees' Retirement
System of <st1:State w:st=3D"on">Alabama</st1:State> v. Head, 369 So.2d 122=
7,
1229 (<st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:p=
lace>
1979).</span> <br>
It is not the court&#8217;s &#8220;place to engage in such a guessing
game&#8221; of what the Legislature should have done or what the statute sh=
ould
have stated. <span class=3DSpellE><span class=3DGramE>DeKalb</span></span><=
span
class=3DGramE> County LP Gas Co. v. Suburban Gas, Inc., 729 So.2d 270, 277 =
(<st1:place
w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:State></st1:place> 1998).</spa=
n>
Rather, the job of any court is &#8220;to say what the law is, not what it
should be.&#8221; <st1:City w:st=3D"on"><span class=3DGramE>Hammonds</span>=
</st1:City><span
class=3DGramE> v. Town of <st1:City w:st=3D"on"><span class=3DSpellE>Pricev=
ille</span></st1:City>,
886 So.2d 67, 70 (<st1:place w:st=3D"on"><st1:State w:st=3D"on">Ala.</st1:S=
tate></st1:place>
2003).VI.</span><br>
FINDINGS OF FACT AND CONCLUSIONS OF LAW<br>
<br>
<span class=3DGramE>The</span> facts of the case are hardly in dispute. The=
 task
for the court is to determine the legal question of whether the Sweepstakes
operation at the Race Course constitutes a lottery. The other legal questio=
n is
whether the Sweepstakes operation constitutes gambling or use of a gambling
device. <br>
The <span class=3DSpellE>CyberCenter</span> services have substantial value=
 and
they enhance the racing experience at the Race Course. The plaintiffs expen=
ded
significant funds for construction and operation of the <span class=3DSpell=
E>CyberCenter</span>
thereby providing computer programs and access to <span class=3DSpellE>pari=
</span>
<span class=3DSpellE>mutuel</span> betting information and other personal a=
nd
business services. The parties stipulated that &#8220;[t]he rates charged f=
or
access to the <span class=3DSpellE>CyberCenter</span> is fair market
value.&#8221; Although usage of the <span class=3DSpellE>CyberCenter</span>=
 was
scant during the six days of operation, some purchasers of Internet time
actually made use of the <span class=3DSpellE>CyberCenter</span>. During th=
e six
days of the Sweepstakes&#8217; operation, significant increases were
experienced in attendance, pari-mutuel revenues, and concession sales at the
Race Course facility. The promotion <br>
<br>
was apparently working. While some institutions, such as the Birmingham Pub=
lic
Libraries, provide free Internet access it cannot be disputed that Internet
time is a valuable service for which many people have to pay. What the
customers of the <st1:City w:st=3D"on"><st1:place w:st=3D"on">Quincy</st1:p=
lace></st1:City>'s
Sweepstakes do with the Internet time they have purchased does not contradi=
ct
the fact that they actually purchased a valuable service or product. <br>
Neither the Sweepstakes system nor the other operations were designed to
impose, and did not impose, a charge on customers for the entries they rece=
ived
in connection with their purchases of Internet time. The record contains no
evidence that anything of value was required of the customers in order to
receive Sweepstakes entries. Entries could be obtained by the customers eit=
her
through purchases of Internet time or through a mail in request for a free
entry done according to rules established by the Birmingham Racing Commissi=
on.
In the context of this case and considering all the evidence, this Court fi=
nds
that any additional benefits to the customer over and above the Internet ti=
me,
namely the Sweepstakes entries, were a gratuity as opposed to a purchase for
consideration. <br>
This Court concludes as a matter of fact and of law that the element of
consideration is lacking in the <st1:City w:st=3D"on">Quincy</st1:City>&#82=
17;s
Sweepstakes and therefore, the <st1:City w:st=3D"on">Quincy</st1:City>&#821=
7;s
Sweepstakes does not meet the definition of a lottery under current <st1:St=
ate
w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:State> law.<br>
With regard to gambling, the evidence was undisputed that the outcomes of t=
he
Sweepstakes entries are predetermined before they are given to the purchase=
rs
of Internet time. After the purchase, there is no contest of chance or futu=
re
contingent event impacting whether the customer wins or loses. Consequently,
neither the Sweepstakes nor the individual components thereof fit the curre=
nt
definitions of illegal &#8220;gambling&#8221; or &#8220;gambling devices&#8=
221;
contained in Sections 13A-12-20(4) <br>
and (5). Because no element of chance is present at the Readers, and becaus=
e no
consideration is paid or can be paid to use the Readers, this Court finds t=
hat
the Readers are &#8220;dumb terminals&#8221; and are not slot machines or o=
ther
types of gambling devices under Alabama law.<br>
The Sheriff contends that the <span class=3DSpellE>MegaSweeps</span> operat=
ion is
a &#8220;sham&#8221; while the plaintiffs vigorously deny this charge. A
&#8220;sham&#8221; is defined in various dictionaries as: a spurious imitat=
ion;
fake; something that is not what it purports to be; an imitation that is me=
ant
to deceive; a counterfeit; a deception. In some of these senses, the
Sweepstakes operation is a sham. The court in this case, sitting without a
jury, is the <span class=3DSpellE>trier</span> of the facts and it is clear=
 that
the Sweepstakes promotion is not what it appears to be; it appears to be a
lottery, but it is not; it appears to be gambling, but it is not; the Reade=
rs
appear to be slot machines, but they are not. So the court agrees with the
Sheriff that in this sense the promotion is a sham. Despite the testimony at
trial about the plaintiffs&#8217; high-sounding motivation in establishing =
the <span
class=3DSpellE>CyberCenter</span>, the court finds that the plaintiff under=
took
this promotion to attract customers who wanted to gamble, or, at least, tho=
se
who could be made to think that they were gambling. Plaintiffs&#8217;
advertising through television commercials and billboards promoted playing =
<span
class=3DSpellE>MegaSweeps</span> as an alternative to attending gambling
establishments at <span class=3DSpellE>Greentrack</span>, or <st1:City w:st=
=3D"on">Philadelphia</st1:City>
and <st1:place w:st=3D"on"><st1:City w:st=3D"on">Biloxi</st1:City>, <st1:St=
ate
 w:st=3D"on">Mississippi</st1:State></st1:place>.<br>
The operation looks and sounds like a gambling casino, but under <st1:State
w:st=3D"on"><st1:place w:st=3D"on">Alabama</st1:place></st1:State> law it i=
s not.
The evidence convinces the court that through careful planning the plaintif=
fs
have found a loophole in the patchwork of <st1:State w:st=3D"on"><st1:place
 w:st=3D"on">Alabama</st1:place></st1:State>&#8217;s anti-gambling laws and=
 they
have taken advantage of that loophole. In the words of the Sheriff&#8217;s
expert witness, Robert <span class=3DSpellE>Sertell</span>, the plaintiff&#=
8217;s
sweepstakes promotion was &#8220;trying to pull a tractor-trailer through a
loophole.&#8221; This court agrees that the plaintiffs have taken advantage=
 of
weaknesses in the law, but it would be the height of judicial activism for =
this
court to legislate in response to that loophole. Perhaps the Alabama
Legislature will do so. The stipulations of the parties, the evidence, and =
<st1:State
w:st=3D"on">Alabama</st1:State> law compel this Court to rule that the <st1=
:City
w:st=3D"on"><st1:place w:st=3D"on">Quincy</st1:place></st1:City>&#8217;s Sw=
eepstakes
promotion as explained and demonstrated to the Court is a lawful sweepstakes
operation. <br>
There has been no evidence of any wrongdoing on the part of the Sheriff. Un=
der
the facts<br>
of this case, it is no surprise that different people seeking answers in go=
od
faith could come to different conclusions as to whether the plaintiffs&#821=
7;
promotion was lawful. The matter is complex and it is only after a consider=
able
amount of consideration of the evidence and of the law, that this court has
concluded that it was lawful. When Sheriff Hale conducted the raid, he was
relying on an undercover investigation and on expert opinion that the opera=
tion
was illegal. The Sheriff was performing the duty imposed upon him by Alabama
law: <br>
&#8220;(4) It shall be the duty of sheriffs in their respective counties, by
themselves or deputies, to ferret out crime, to apprehend and arrest crimin=
als,
and, insofar as within their power, to secure evidence of crimes in their
counties and to present a report of the evidence so secured to the district
attorney or assistant district attorney for the county.&#8221; <st1:place
w:st=3D"on"><st1:State w:st=3D"on"><span class=3DGramE>Ala.</span></st1:Sta=
te></st1:place><span
class=3DGramE> Code (1975) Section 36-22-3.</span><br>
<br>
No court should discourage that vital function of law enforcement and nothi=
ng
in this final judgment should be construed as criticism of the
defendant&#8217;s actions in connection with this case.<br>
The plaintiffs have forcefully argued that the relevant statutes, Ala. Code
(1975) Section 13A-12-20 et seq., are unconstitutional as applied to this c=
ase
because of vagueness. The United States Supreme Court has said that a law m=
ay
be void for vagueness if persons &#8220;of common intelligence must necessa=
rily
guess at its meaning and differ as to its application.&#8221; <span
class=3DGramE>Smith v. <span class=3DSpellE>Goguen</span>, 415 <st1:place w=
:st=3D"on"><st1:country-region
 w:st=3D"on">U.S.</st1:country-region></st1:place> 566, 572, n.8 (1974).</s=
pan>
The argument may have merit, but because of the conclusion reached <br>
<br>
by the court that the plaintiffs&#8217; promotional scheme is lawful, the
constitutional issue need not be addressed. <br>
The Court finds that plaintiffs have established the requisites for permane=
nt
injunctive relief under Rule 65, Ala. <span class=3DSpellE>R.Civ.P</span>.,=
 as
well as the requested declaratory judgment. The plaintiffs have succeeded in
establishing the merits of the claims asserted in their complaint. Serious =
harm
has occurred and threatens to continue if the shut-down is not permanently
enjoined. An action at law for damages would not be an adequate remedy. The
harm and continued threat of harm to the plaintiffs outweighs any harm whic=
h an
injunction will inflict on the Sheriff. In addition, a permanent injunction,
permitting reopening and operation of the <span class=3DSpellE>CyberCenter<=
/span>
and the <st1:City w:st=3D"on">Quincy</st1:City>&#8217;s Sweepstakes in the =
manner
represented to this Court, will be consistent with <st1:State w:st=3D"on"><=
st1:place
 w:st=3D"on">Alabama</st1:place></st1:State>&#8217;s laws permitting legal
sweepstakes.<br>
FINAL JUDGMENT<br>
Upon consideration it is ORDERED AND ADJUDGED as follows<span class=3DGramE=
>:</span><br>
1. This Court declares that the <st1:City w:st=3D"on">Quincy</st1:City>&#82=
17;s
Sweepstakes as represented to this Court during trial, is a lawful sweepsta=
kes
promotion and is not illegal under <st1:place w:st=3D"on"><st1:State w:st=
=3D"on">Alabama</st1:State></st1:place>
law.<br>
2. The Sheriff is, therefore, permanently enjoined from further actions aga=
inst
such operations at the Race Course facility, provided plaintiffs operate the
Sweepstakes as represented to the Court.<br>
3. The Sheriff is instructed to return to the Race Course all money seized
during the<br>
raid, as well as any remaining papers, records, equipment, or property <span
class=3DSpellE>siezed</span> but not heretofore<br>
returned. <br>
4. The plaintiffs deposited funds with the Sheriff to guarantee payment of =
the
expenses incurred by the Sheriff to pay a moving company to return the
plaintiffs&#8217; equipment to the Race Course. Said funds shall be used to=
 pay
(or reimburse, if they have been paid) such expenses and any balance remain=
ing
shall be returned by the Sheriff to the plaintiffs. 5. In view of this Cour=
t's
Order, the Plaintiffs' Motion to Quash the Search Warrant and District
Attorney's Subpoena are MOOT.<br>
6. Costs are taxed as paid.<br>
Done and ordered, this the 31st day of January, 2006.<br>
<br>
<br>
______________________________________<br>
J. SCOTT VOWELL, PRESIDING JUDGE<br>
<br>
cc: All counsel of record. <br>
<br>
Pursuant to Ala. Code (1975) 6-6-227, the Alabama Attorney General received
notice of the plaintiffs&#8217; case including the constitutional challenge=
 to
the relevant statute. The court allowed the Jefferson County District Attor=
ney
to intervene. <br>
<span class=3DGramE>Stipulation #41.</span> The Sheriff subpoenaed Troy Kin=
g, the
Alabama Attorney General, to testify at the trial but King immediately file=
d a
motion to quash the subpoena. He also filed a petition for a writ of mandam=
us
in the Alabama Supreme Court requesting that court to stay the trial until =
the
motion to quash could be considered. On the morning of the trial, this court
granted King&#8217;s motion to quash the subpoena and the case proceeded to
trial. <br>
<span class=3DGramE>Stipulation # 8.</span><br>
Defendant&#8217;s Exhibits 15 and17.<br>
<span class=3DGramE>Trial transcript 845-846.</span></span></p>

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