There’s quite a bit of complexity to the Texas law but we’ll start with the one most likely to impact the person reading this and then get into the more complicated laws.
Are Poker Home Games Legal?
Home games, private poker games played in a private residence, are legal in Texas. This is among the few exceptions in Texas Gambling Law. The key focus of the law is targeting whether you are a “gambling establishment.” Where establishment is thought of as a destination where the entity makes money not as a result of skill or luck. In other words, someone is making money that is not one of the players.
Are Poker Tournaments Legal?
Similarly, if the poker tournament is being held at a private residence then you’re probably fine so long as the house is not taking a cut. For example if a group of ten friends buy in $20 and the winner gets $200, you’re fine. If you advertise a tournament, charge an entry fee and take some cut, you’re now in dangerous territory. This will bring us to membership poker clubs which targeted a perceived loophole in the Texas gambling law.
Membership Based Poker Clubs: A loophole in Texas poker law?
As an article by the Texas Bar discussed, private poker clubs have emerged that charger a membership fee in exchange for the ability to gamble legally. The loophole being attacked by the process is the question of whether or not the house takes a vig (a cut of the proceeds). The law says that if gambling occurs in a private place and the only economic beneficiary of the wagering is the winner, then it’s legal. This is where the loophole comes in where institutions have sought to create private poker “clubs” that are membership based.
The Harris County Situation
In early 2019, a series of raids on private poker rooms made news when Harris County officials attempted to put an end to this so called loophole. Believing these poker clubs were a nuisance to the community and attracting the wrong type of crows (this will be important later) and potentially contributing to organized crime. The situation attracted much interest from neighboring Texas counties about what would be the outcome of the prosecution. Let’s start with the beginning.
The Poker Room Raids
In May of 2019, police in Harris County raided private poker rooms and, instead of charging the operators of the establishment with misdemeanors, prosecutors added on additional charges of money laundering and organized crime. If you remember from our piece explaining Texas Gambling laws, the charge here would only be a class C misdemeanor which is merely a fine (up to $500) and comes with no jail time. The prosecutors wanted to add on additional charges in order to send a message that this type of behavior would not be tolerated.
Charges Dismissed
Roughly two and half months later, July of 2019, the charges were suddenly dropped by prosecutors. At the time, both owners of the establishments (there were two separate establishments targeted) and employees, were being charged. Why were the charges dismissed? Perhaps in one of the great ironies of recent Texas law, the charges were dismissed due to the fact that many members of the Harris County District Attorney’s Office had frequented the clubs.
Texas Establishments Where You Can Play Poker
Outside of private home games and online play, the law specifically targets the aforementioned gambling establishments, at least on state land. Recent Bills, which we’ll get to, have sought to create casinos in vacation spots near the water to boos tourism. With neighboring Louisiana, many Texas beach towns have had trouble luring tourists to come in lieu of the short trip to New Orleans.
Indian Reservations in Texas
As the USA Today noted, Texas was once a state home to hundreds of Native American tribes. However most of these tribes were eradicated via war or forced to move off their land in one way treaties. Now there are only three federally recognized tribes in Texas and their ability to offer gaming on the premises has been the subject of a tremendous amount of legal scrutiny both at the federal and state level.
The Indian Gaming Regulatory Act (passed October 17, 1988) made it federal law that Native Americans are allowed to conduct and regulate gaming on their own lands. However to what extent the gaming is allowed is still a point of contention. As of right now, Indian Reservations are fighting bitterly to have full blown Vegas style gambling allowed on state lands. Unfortunately, federal courts have been siding with the state. Therefore Indian Reservations in Texas are only allowed to offer electronic bingo type games.
Private Home Games
As noted above, private home games remain a legal way to play poker in Texas. Remember to avoid getting too carried away with advertising the game and, if you’re the host, never take a cut just for hosting the event (much less a rake).
Online Poker
This is going to come down to how the law is interpreted, but as poker sites will tell you, online poker is not “illegal” in Texas, at least for the players point of view. You can play poker on sites like Bovada, but you are not allowed to create, run, or facilitate play on your own website or mobile app or anything of that nature.
Recent Laws Targeting Poker
Most of the recent laws having to do with poker involve either native american lands or vacation gaming bills. Particularly, in the case of the vacation bills, HB 2257 which sought to “legalize operation of casino’s in certain state coastal areas.” That bill failed to make it out of committee.
Additionally SJR 41 dealt with the touchy subject of the Kickapoo tribe and their relationship between the state, the federal government, and their rights as a federally recognized territory. This bill failed to make it out of committee.
We’ll update this section with historical information and new laws as they come in. The federal government, federal courts, and state courts are constantly jockeying for position.
I bring to you a comprehensive understanding of the legal intricacies surrounding poker in Texas, backed by an extensive knowledge of gambling laws and their application in the state. My expertise extends to the recent developments and key events, providing insights into the challenges faced by poker enthusiasts and the legal landscape they navigate.
Firstly, let's delve into the legality of Poker Home Games in Texas. Home games, played in private residences, are legal in the state, marking one of the few exceptions in Texas Gambling Law. The pivotal criterion is whether the setting qualifies as a "gambling establishment," where the focus is on whether someone other than the players is making money, not as a result of skill or luck.
Moving on to Poker Tournaments, if held in a private residence without the house taking a cut, they are generally considered legal. However, organizing tournaments that involve advertising, entry fees, and a house cut can lead to legal complications, venturing into dangerous territory.
Now, let's explore the concept of Membership Based Poker Clubs, which aimed to exploit a perceived loophole in Texas gambling law. These clubs charge a membership fee, creating a scenario where gambling occurs in a private place, and the sole economic beneficiary is the winner. The legal debate centers around whether these clubs violate the law by taking a cut (vig) of the proceeds.
The Harris County Situation in 2019 provides a noteworthy case study. Raids on private poker rooms led to charges of money laundering and organized crime against operators and employees. The charges were later dismissed, and one of the ironies lies in the fact that members of the Harris County District Attorney’s Office had frequented the clubs.
Beyond private settings, the Texas law specifically targets gambling establishments on state land. Recent bills have been introduced to create casinos in vacation spots near water to boost tourism, but these efforts have faced challenges.
Turning to Indian Reservations, only electronic bingo-type games are currently allowed in Texas due to legal disputes. The Indian Gaming Regulatory Act of 1988 permits Native Americans to conduct and regulate gaming on their lands, but the extent of gaming allowed remains contentious.
Private Home Games continue to be a legal avenue for playing poker in Texas, emphasizing the importance of avoiding excessive advertising and refraining from taking a cut if hosting the event.
In the realm of online poker, while playing on sites like Bovada is not explicitly illegal for players, creating, running, or facilitating play on personal websites or mobile apps is prohibited.
Recent laws related to poker in Texas primarily involve Native American lands and vacation gaming bills. Bills such as HB 2257, seeking to legalize casinos in certain coastal areas, and SJR 41, addressing the Kickapoo tribe's rights, have faced challenges in the legislative process.
I will keep you updated on historical information and new laws as they emerge, recognizing the dynamic interplay between the federal government, federal courts, and state courts in shaping the legal landscape for poker in Texas.
