Federal Jury Awards $64 Million to Charity Bingo Developers Blocked by VictoryLand

Macon County, Alabama had one dominant player in electronic bingo: VictoryLand, the greyhound racing and gaming complex owned by Milton McGregor. When Lucky Palace LLC began developing a rival facility near Interstate 85 in Shorter, and lined up 15 local charities to benefit from its games, McGregor took steps to stop it.

Lucky Palace and the charities filed a civil lawsuit in U.S. District Court in Montgomery, alleging that McGregor and Macon County Sheriff David Warren conspired to shut out new competition. The plaintiffs argued that McGregor worked with Warren to interpret and administer the county bingo licensing rules in ways that blocked Lucky Palace from opening while protecting VictoryLand's position in the market.

Stephen D. Heninger of Heninger Garrison Davis led the plaintiffs through a full federal trial before Judge Keith Watkins. The firm's trial presentation included testimony from a forensic accountant who calculated Lucky Palace's lost profits at roughly $61 million. McGregor himself took the stand for five hours.

The jury returned its verdict on May 24, 2012. It found McGregor and VictoryLand liable for intentional interference and awarded $42.2 million in compensatory damages to Lucky Palace, plus $126,000 to each of the 15 charities, and $20 million in punitive damages split among all 16 plaintiffs. The total came to $64.1 million. Warren was found to have violated equal protection but the jury determined he had misread the rules rather than acted with deliberate intent, and he was assessed no monetary damages.

McGregor's attorney signaled an appeal. In August 2012, however, the parties reached a confidential settlement that vacated the jury judgment and dismissed the case. The terms were not disclosed publicly. Warren was separately released from the case with no financial obligation.