Are poker clubs legal in Texas? The answer isn't exactly no. Here's why (2024)

Online betting is everywhere — on your phone, TV and devices.

While some like to drive to casinos, here in Texas, others partake in poker rooms. If you drive around Austin or other cities in Texas, you might notice a few.

According to Poker.org, there are more than 50 poker rooms in Texas.

Are these poker rooms legally able to operate?Here’s what to know.

Are poker rooms legal in Texas?

In 2019, a pair of private poker clubs were raided in Houston. The raid at Prime Social and Post Oak Poker Club led to the arrest of nine people involved with the poker rooms, according to ABC13.The owners arrested were charged with felonies; however, Harris County District Attorney Kim Ogg later dismissed the case due to conflicts of interest.

The original argument was whether the owner and operator benefited financially from the poker matches being played.So, how are these poker rooms able to function within the law?

According to the gambling statute of the Texas Penal Code, a person commits an offense when there are “plays and bets for money or other things of value at any game played with cards, dice, balls, or any other gambling device.”

However, the law indicates the following exceptions:

• The actor engaged in gambling in a private place.
• No person received any economic benefit other than personal winnings.
• Except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for all participants.

How do poker rooms operate in Texas?

Texas laws prohibit most forms of gambling. Private businesses operate gambling through a legal loophole. These poker rooms charge a monthly membership fee as well as an hourly fee that members pay as soon as they enter the club.

According to the law, the house isn’t allowed to take a cut of the pot from the games being played. Their money is made from membership fees.

Dealers can't earn tips, either. Clubs could get shut down if they're making money from a poker tournament.

Poker rooms shut down in Texas

According to The Dallas Morning News, several crackdowns on poker rooms have been conducted in accordance with the law.

Here’s a list of poker rooms that are no longer in business or temporarily closed after law enforcement issued sanctions.

• CJ's Card Club in Dallas — Permanently closed.
• Top Shelf Poker Room in the East Texas city of Flint — Permanently closed.
• Lucky's Card Room in Fort Worth — Was temporarily closed.
• Shuffle 214 in Dallas — Was temporarily closed.

Can a nonprofit host a poker night for a fundraiser?

According to the Texas attorney general’s office, there is no exception to the gambling law in Texas for nonprofits to hold poker or casino night fundraising events.

But for now, the law states that under certain statutory conditions, it is legal for individuals to play poker or other casino activities in a private place. The law is defined as "a place to which the public does not have access."

They can bet, win and lose money; however, all money must be redistributed to the participants. The host organization can’t keep any portion of the proceeds in these private poker or casino nights.

Punishment for operating a poker club illegally

Poker clubs have not been legalized by a constitutional amendment or statewide referendum but are generally allowed, according to Zack Fertitta, who helped represent Prime Social in getting its case dismissed.

Fertitta wrote in the Texas Bar Blog that punishment can vary.

“In the future, however, it is anticipated that Texas prosecutors and local agencies, tempted by lucrative seizure opportunities, will once again attempt to shut down local gambling clubs,” he said. “Certainly such efforts will not cease in Harris County as the district attorney made clear that such establishments are illegal. Moreover, the club owners and employees of Prime Social and the Post Oak clubs are not in the clear as their cases were referred to the FBI for consideration.”