Pelham city leaders Monday decided not to revoke the business licenses of two bars, after assurances that illegal gambling would not be taking place there.

The city council held public hearings dealing with Lil Bits Tavern, on County Road 52, and Pub 261, on Helena Road.

Pelham had received reports of bingo games with cash entry and cash prizes taking place at the two businesses – two nights a week at one, and three nights a week at the other.