Poker in Texas: The Complete Guide – Pokerfuse

Texas has had poker for years. Whether its legal or not is open to interpretation.

Its a complex situation. Under state law, most forms of gambling are illegal. There are a few exceptions including the state lottery, three tribal casinos, horse and greyhound racing, bingo, and various raffles.

The states gambling laws are also vague just a few words of the Texas Penal Code have allowed dozens of private poker clubs to operate as legitimate businesses.

But the ambiguity of the law has also created a problem since the wording isnt clear, prosecutors in some localities have pursued charges against the owners and operators of private poker clubs and tried to force their closure. Charges were dismissed in some cases, but club owners and operators across Texas have complained of harassment by city and county officials.

Recently, competing legislation has been filed in the Texas Legislature to either clarify state law and make the private poker clubs unambiguously legal, or to tweak the wordage of the Texas Penal Code to make them illegal once and for all. Bills calling for either of these outcomes fell short in 2023 and wont be reintroduced until 2025 at the earliest.

Supporters of legalized sports betting also failed to get a bill across the finish line before the legislature adjourned in May. Its likely that legal real money online poker is still several years away in the Lone Star State, and would likely be preceded by the legalization of sports betting.

Most forms of gambling in Texas are illegal, but there are some exceptions. Chapter 47.02c of the Texas Penal Code provides several carve-outs:

The Kickapoo Traditional Tribe of Texas, the Alabama-Coushatta Tribe, and the Tigua Indians of the Ysleta del Sur Pueblo own and operate the aforementioned tribal casinos, respectively. Each is recognized by the federal government and are therefore exempt from Texas prohibitions on gaming.

The lifeline afforded to the dozens of private poker clubs across Texas is enshrined in the preceding section of the Texas Penal Code specifically, Chapter 47.02b.

The clause provides a defense to prosecution for gambling offenses. It states that a person shall not be considered to have run afoul of Texas gambling laws if:

The words private place and economic benefit are at the heart of what some perceive to be a loophole in Texas law. Thats because they offer private poker clubs the opportunity to qualify as legitimate businesses.

Since the clubs dont take a rake (or percentage) for hosting a poker event, there is no economic benefit. Instead, the clubs make money by levying membership fees and other charges, such as for the amount of time a player is at the tables typically at half-hour or hourly rates. Some clubs also serve food and alcohol.

In a nutshell: Private poker clubs in Texas operate in a legally gray area.

It should be noted that Texas isnt the only state with private poker clubs. According to the American Gaming Association (AGA), so-called card houses also operate in five other states California, Florida, Minnesota, Montana, and Washington state.

Until recently, law enforcement typically did not interfere with the private poker clubs. The most consequential case involving a crackdown was in 1994 with the case Gaudio v. State. The Texas Court of Appeals ruled that an individual (Gaudio) could not legally run a private poker game from his apartment and use rake proceeds to pay for the apartments expenses.

Gaudio established a legal precedent, and private poker clubs came away with the understanding that they could not touch the pot. Rather, they would adopt a new business model of levying membership and seat rental fees.

But the outward success of some of the larger private poker clubs attracted the attention of local authorities. In May 2019, Harris County which is home to the states biggest city, Houston pursued money laundering, gambling promotion, and organized crime charges against two large clubs in Houston. Players were not targeted for prosecution.

Shortly after the raid, Rep. Geanie Morrison (R-Victoria) asked Republican AG Ken Paxton to issue a formal opinion on whether he thought the membership and seating fees constituted a rake. Paxton declined, citing pending litigation at the time between clubs in Austin and San Antonio.

That decision annoyed prosecutors and law enforcement in Harris County and Houston. But prosecutors dropped the charges and returned more than $200,000 in seized gambling proceeds three months later after it was revealed that several members of the Harris County District Attorneys Office were frequent club patrons and one served as a political consultant for a club.

Authorities also raided private poker clubs in Flint in March 2022, in Watauga in October 2022, and in Dallas in May 2023.

The increasingly hostile atmosphere has spooked private poker clubs and their members, but many are fighting back. Players in Texas have organized to resist efforts to close the poker halls. They have also backed legislation to clarify the states gaming laws so that there is no question they qualify as legitimate businesses.

One group, Texans for Texas Holdem (TFTH), was founded by professional poker player Doug Polk. The group frets that there are three ways that private poker clubs in Texas could be forced to close:

Polk co-owns The Lodge Card Club in Round Rock, one of four clubs to form TFTH. The other members of the group are Texas Card House (which has multiple locations), SA Card House in San Antonio, and Champions Poker Club in Dallas.

TFTH supported a bill introduced by Rep. Ryan Guillen (R-Rio Grande City) in the last legislative session. HB 2345 called for codifying that economic benefit means direct winnings from a game of skill or luck, and that private place means a place where the public needs a valid membership.

The bill passed the House in May but died before a Senate committee later that month. The Texas Legislature only meets in odd-numbered years, so the earliest that a new bill to protect the private poker clubs could be introduced is January 14, 2025.

Conversely, HB 732 represented an existential threat to the clubs. The bill, introduced by Rep. Gene Wu (D-Houston), would have changed private place to private residence thereby rendering all private poker clubs in non-residential areas illegal.

Besides being introduced in November 2022, Wus bill saw no action.

The website PokerAtlas lists 60 active private poker clubs as of December 2023. They are:

Online poker in Texas is likely several years away from becoming a reality, considering most forms of gambling are illegal. The state doesnt even have sports betting yet, and that vertical is usually seen as a precursor to a launch of online poker (and casino gaming).

A bill to legalize mobile sports betting, HB 1942, was introduced in the Texas House of Representatives in February 2023 and won passage three months later. But the bill was dead on arrival in the Senate due to opposition from Lieutenant Governor Dan Patrick and other Republicans in the Senate.

My experience and my knowledge is that we arent even anywhere close to having 15 or 16 votes for casinos, Patrick told KTVT-TV in Fort Worth on December 1. When the session was over, there was not a hue and cry from voters calling their senators or their House members.

Patrick hinted that supporters of mobile sports betting were nave in thinking it would be legalized anytime soon. Big things dont happen overnight, he said. You dont just wave a magic wand, you have to get in the trenches and grind it out.

Yes, but it operates in a legally gray area. Private poker clubs are able to operate because they charge membership fees from players instead of taking a portion (or rake) from the pot.

Estimate vary, but the group Texans for Texas Holdem (TFTH) estimated that there were more than 75 private poker clubs in Texas in 2023.

There are clubs all over Texas, but most are clustered in four major metropolitan areas Austin, Dallas, Houston, and San Antonio. There are also many clubs in Amarillo, Corpus Christi, El Paso, Fort Worth, Galveston, Lubbock, Midland, and Waco.

Many private poker clubs in Texas run daily cash games and tournaments. Some have cash games spread limits of 2/4 Limit, 1/3 No Limit, 2/5 No Limit, 1/3 Pot Limit and 5/5 Pot Limit Omaha (PLO). Daily tournaments have featured Deep Stacks, Turbos, Bounties and PLO.

Please play responsibly. If you or someone you know has a gambling problem and wants help, call 1-800 GAMBLER.

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Poker in Texas: The Complete Guide - Pokerfuse