The City of Hitchcock, Texas, US, is trying to take back over $720,000 seized by law enforcement during an investigation aimed at illegal gambling. However, according to a federal judge’s recent ruling, the Southeast Texas city’s efforts will not pay out.
The judge has dismissed the city’s attempt to recover the money, jeopardizing daily operations, including basic public services.
9% of the City’s Annual Budget, Gone
The ruling stems from a lawsuit filed after the Galveston County Sheriff’s Office froze approximately $721,000 from Hitchcock’s general fund bank account on June 24, 2026.
City officials claimed that the seizure represented close to 9% of the city’s annual budget, thus triggering an immediate financial crisis.
According to the lawsuit, the loss of the money threatened the city’s ability to pay for basic services, including maintaining public safety. To make matters worse, Hitchcock cannot use any line of credit and has no additional quick source of funding to replace the seized money.
The city argued that the money not tied to illegal forms of gambling and belonged to taxpayers. Hitchcock also claimed that the sheriff’s office lacked probable cause to seize public funds, saying the action violated constitutional protections under the Fourth and Fourteenth Amendments.
However, these arguments did not suffice to convince US District Judge Jeffery Brown, who chose to dismiss the case and rule that one government subdivision cannot sue another government subdivision under the federal civil rights law known as 42 U.S.C. Section 1983.
In other words, Hitchcock will nto be able to pursue its claims through that legal avenue.
The Eight-Liner Gaming Problem
The dispute is connected to a complex investigation into so-called eight-liner gaming machines, which resemble slot machines and are commonly found in game rooms across Texas.
While some operators describe them as amusement devices, courts have increasingly ruled that many operate as illegal gambling machines.
Earlier this year, deputies raided several game rooms in Hitchcock after they investigated allegations of illegal cash payouts and other criminal activity. Their efforts resulted in dozens of arrests and the seizure of hundreds of gaming machines.
Among those charged was Hitchcock Mayor Christopher Armacost, who faces a felony charge of engaging in organized criminal activity after investigators alleged illegal gambling machines were operating inside a laundromat he owns. Armacost has denied the allegations.