Hand Analysis
Is poker legal in Texas ?
Some poker is and some isn't. The laws are outdated and don't apply to the way the game is played today -- which is the reason we are here.
How do I know if my game is illegal?
Is the "house" benefiting in any way? Is there a fee to play? Are you playing for real money in a commercial establishment? Is the pot raked? Are you paying a dealer? Are you playing with real money with a percentage of the prize pool going to charity? If the answer to any of these questions is yes, then the game you are playing could be considered illegal under a strict interpretation of the law.
Example: You're playing in a $20 buy-in freezeout tournament at your friend's house. There are 20 players so the pot is $400 to be distributed among the top 5 finishers. So far you are within the law.
But suppose dinnertime comes around, and your friend forgot about food. Everyone at the tournament agrees that $2 from each buy-in should go toward food, reducing the size of the winnable pot to $360. You just broke the law. However, had the food been thought about in advance, and the tourney was an $18 buy-in with a separate banker taking an "optional" $2 from each player for pizza, then you should be able to make a strong case about the legality of your game in court (unless, of course, you decide that $1 from each buy-in should go to your legal defense fund).
Read another explanation of how current laws may or may not apply to the game you play.
What are the relevant laws?
Gambling and games played with cards are covered mainly under §47.02 of the Texas Constitution.
Have there been any recent rulings in Texas ?
With requests coming in from several municipalities around the state, Attorney General Greg Abbott issued an opinion in June 2005 on the legalities of free tournaments. He declared that when players are risking $0 -- even to win a $10,000 WSOP seat -- it clearly isn't gambling. Likewise, if you pay to play and no one can win anything , that too wouldn't be gambling (nor would it be any fun).
What about charity poker?
This is the grayest area. For several years, various charities have found Texas Hold'em tournaments to be a fun and successful way to raise money for people in need. The better the prizes, the more money they could raise. But recent legal interpretations have made some charities hesitant to organize good tournaments that players would enjoy.
There was a bill last session that would have helped to clarify what is and what is not permissible in the charity realm, but it never made it out of committee. We intend to focus much of our efforts on this area of the law.
How much money do the charities lose by not being able to hold real tournaments?
Millions! The annual La Riata tournament in Dallas previously raised $250,000 in one day for the Children's Medical Center. But last year, event organizers tried to follow the letter of the law by raffling off prizes to players instead of awarding them to the top finishers. The result - players had much less fun and were feeling far less charitable, with the event raising only $100,000. Likewise, highly publicized charitable tournaments such as Dale Hansen's Cards for Kids in Dallas and a Phil Hellmuth tournament in Houston for the Susan G. Komen Foundation stood to raise hundreds of thousands of dollars each, before authorities put the kibosh on the events.
Smaller organizations from slain police officer funds to children's charities are trying to benefit from poker's popularity, but one strict DA or police chief can kill any chances of holding a charitable tournament. At the same time, many charitable outfits continue to raise money by awarding donated prizes, and for the most part these smaller events have not run into legal trouble -- in part because it's not worth law enforcement's efforts to put a stop to them.
What penalties might I face for playing "underground" poker in Texas ?
It's a Class C misdemeanor to play, a Class A misdemeanor to run a gambling establishment. That means fines like a traffic ticket, and potentially a year in jail. While these crimes are seldom prosecuted, police have been known to harass some games and threaten the operators with various felonies. However, there has yet to be a single felony conviction related to poker in the state's history. In fact, even in misdemeanor cases, prosecutors have been reluctant to take them to trial because they know the grayness of the laws would make getting convictions a coin-flip situation at best . and probably not worth the expense.
Mostly, the illegality of poker results in large sums of cash moving under various tables, untaxed and unregulated. This can lead the authorities to suspect other, more serious crimes (such as money laundering) when they find an illegal operation.
How is poker different from other forms of gambling?
Because there's no house advantage, it is a game of skill - like darts, billiards, and golf - with elements of chance mixed in. Also, because of the structure, it is much more difficult to lose your last dollar playing poker than it is in a slot machine. The concept of table stakes prevents someone from going deep into debt within the game.
We do not dispute, though, that poker is a form of gambling. As in any hobby or pursuit, one should be responsible when playing for real money. Gambling, like drinking, smoking, driving and riding bulls, can be detrimental to one's health. We encourage people to be responsible when enjoying this pastime.
How could Texas benefit from more legal poker?
Conservative estimates indicate poker is at least a $60 million a year unregulated, untaxed business. Because these games operate underground, it's hard to know exactly how much potential revenue for the state is in play. But we do know that
- If the game were more legal, more people would play in venues that the state would profit from
- Oklahoma and Louisiana casinos recognize how lucrative the Texas poker player market is, and are working hard to prevent legal poker in Texas.
Now Mexico is looking to get in on the action, too, with plans to open poker rooms just across the Rio Grande. The Texas State Comptroller estimates $1 billion leaves the state every year so people can engage in games that are not legal here.
What can I do to help?
Join our efforts. Your contribution will allow us to push back in the media, educate legislators and help friends of poker win elections. We have a team of professional lobbyists and media strategists ready to represent you, and the game you love.
Join the Texas Poker PAC today!
