Federal Judge Dismisses City of Hitchcock's Bid to Recover $721,000 Seized in Gambling Probe

A federal judge has dismissed a lawsuit filed by the City of Hitchcock against the Galveston County Sheriff's Office and Sheriff Jimmy Fullen, ruling that one governmental body cannot sue another under the federal civil rights statute 42 U.S.C. Section 1983. The city had sought the return of approximately $721,000 seized from its general fund bank account on June 24, an amount equal to about 9% of its annual operating budget.

Seizure Background

The funds were taken during a Galveston County investigation into alleged illegal gambling operations centered on eight-liner gaming machines, which Texas courts have ruled are illegal when they offer cash payouts. Earlier raids on game rooms in Hitchcock led to dozens of arrests, including Mayor Christopher Armacost, who faces a felony count of engaging in organized criminal activity related to machines at a laundromat he owns. Armacost has denied the allegations.

At a February news conference, Sheriff Fullen alleged that the city had been receiving $800,000 to $900,000 annually from illegal gambling operations, funds he claimed formed part of Hitchcock's budget. City officials, however, asserted that the seized money came from lawful sources—specifically property tax revenue—and not from the amusement licensing fees it collects on video gaming devices and establishments. According to court documents, Hitchcock collected around $842,320 in such licensing fees in 2025, but those funds had already been allocated and spent.

City's Legal and Financial Claims

In its complaint, Hitchcock argued that the seizure violated its rights under the Fourth and Fourteenth Amendments and lacked probable cause. The city described the loss as "directly crippling municipal functions, public safety and infrastructure services," noting that the general fund pays for street repairs, drainage infrastructure, and police protection for its estimated 7,700-plus residents. With no immediately available line of credit to replace the seized amount, city officials said they were forced to implement emergency financial measures.

Judge Jeffery Brown of the U.S. District Court for the Southern District of Texas dismissed the case on procedural grounds, finding that "one governmental subdivision may not sue another subdivision" under Section 1983. The ruling did not address the merits of the seizure itself.

Next Steps

As of press time, neither Hitchcock officials nor Galveston County representatives had responded to requests for comment on whether the city plans to appeal or pursue other legal avenues to recover the funds. The dismissal leaves the $721,000 in the custody of the Sheriff's Office pending the ongoing criminal investigation.