University of Houston political science Professor Brandon Rottinghaus said he believes the membership poker club business model is legal, but may still face an uphill battle to grow and succeed in. North Texas poker clubs gambling that state law, police won't make them fold Gambling is illegal in Texas. But private clubs are relying on the section of state law that offers a defense to.

Playing poker for fun dates back to ages ago when playing cards were first invented. As the second largest state in the US by both area and population, Texas has continued to register a high growth in the number of poker rooms to accommodate growing interest in poker.

The popularity of poker rooms in Texas, however, has not been without challenges considering that Texas has strict anti-gambling laws. This puts many poker room operators at a risk of finding themselves on the wrong side of the law, even without realizing it.

If you own and/or operate a poker room in Texas, you may have questions about the legal aspects of such businesses. If you’re thinking of opening a game room and have questions about Texas gambling laws for your game room, this post addresses these legalities.

Poker Rooms in Texas

The state of Texas allows some forms of gambling such as buying lottery tickets and betting on horse and dog races. Bingo and gambling for charity are allowed, as long as the organizers of such events do not profit from them. When it comes to card rooms, the law clearly states that:

Poker is illegal in a public facility, which is why the card rooms should operate inside private clubs. Public places include but are not limited to hospitals, schools, streets, highways, nightclubs, shops, office buildings hotels, motels and shared areas of apartment buildings.
No one should receive an economic benefit aside from their personal winnings. This also penalizes the act of bookmaking and/or betting on the outcome of a game, contest or on the performance of individual players.
Except for the advantages of skills or luck of the players, all the participants should have the same chances of winning and the risk of losing.

It is illegal to possess and use information that gives you an unfair advantage on the outcome of a game or contest. Making use of illegal gambling devices is also strictly prohibited.

How do Texas Poker Rooms Make Money?

It is clear that the law forbids operators from making a profit from gambling. However, some Texan gamblers, eager to indulge in their passion without worrying about legal consequences, have come up with ingenious ways of earning income such as:

Charging players membership fees to enter the premises. Becoming a member can be as easy as allowing the club to swipe your driving license. Some poker rooms also offer flexible membership models such as a $10 daily membership fee.

These methods, while not explicitly illegal, might cause trouble for game room operators in the future. One could argue that the card rooms are receiving economic benefits from the gambling activities they host, hence breaking the law.

Penalties of Illegal Gambling in Texas

The Texas Penal Code specifically makes it illegal to bet even a few dollars on a hand of poker. This is enough to lead to criminal charges, especially if that action is conducted in a public place. Section 47.02 of the Texas Penal Code makes this a Class C crime which is punishable by:

Fines. Misdemeanor fines for illegal poker rooms in Texas range from a few hundred dollars up to $500. Note that fines can be separate or in addition to community services and probation.
Community service and probation. Courts can also impose community service and probation for gambling convictions. The probation period can last up to 12 months or more.

If an operator conducts organized or professional gambling that promotes players to enter competitions in card rooms instead of simply playing in them, the penalties can be significantly increased. Section 47.03 of the penal code prohibits promoting or operating a gambling place. In addition, Section 47.04 makes it illegal to keep a location intended for public gambling use. These offenses are Class A and are punishable by:

Jail or prison. Anyone convicted of these gambling offences can face up to one year in a county jail.
Fines. The court can impose a fine of up to $4000 for misdemeanor gambling.

Sometimes, if a person is operating a poker room in public, he/she may lose their business license and be denied any future credentials to operate in the states of Texas.

Poker Clubs In London

Understanding Texas Poker Room Gambling Laws

It is important for one to understand how gambling laws work if they plan on operating a poker club. Both newcomers and industry veterans need help in the interpretation of the law, as legal aspects of a business can be both confusing and frustrating.

Recently, more established poker clubs with bigger financial muscles have gone to court in an effort to seek a legal interpretation of exactly what is legal and what is not. One cannot plead ignorance in a court of law, so it is in their best interests to try as much as possible to understand the law.

Laws also keep changing with the times, so even the most informed poker room owner might find himself ambushed by a clause he didn’t know existed.

To that end, hiring a competent criminal lawyer with a thorough grasp of gambling laws comes in handy. A good attorney not only provides advice regarding current industry requirements but also keeps the client in the loop regarding upcoming changes in the law that might impact his or her business.

Consult With a Houston Game Room Attorney

The Law Office of Matthew D. Sharp provides the best advice to those interested in or are already running poker rooms. All legal aspects of the business are discussed with the client, with the view of providing guidance on the best course to take.

With our years of experience in the industry, we provide not only historical background, but also future trends in lawmaking that might affect the client’s poker room. We invite all game room owners to call us and share their experiences and legal needs with us.

Home » Poker News » Are Poker Clubs Legal in Texas?

Wednesday, September 13th, 2017 | Written by Shane Larson

While Texas often leans more toward the conservative side of politics, poker players are intent on eliminating the idea that a conservative state cannot allow gambling to take place within its borders. Despite the stereotype of cowboys playing poker that stem from Texas, the Lone Star State has been one of the slowest regions in the US to adopt positive gambling laws, and currently there are only a few legal gambling related activities permitted in Texas, namely horse racing and the lottery.

Legal Efforts

In Texas, there have been many attempts to legalize land based card rooms. One of the biggest pushes occurred after Chris Moneymaker won the 2003 World Series of Poker Main Event, in the process sparking the poker boom and elevating coverage of the card game to mainstream television shows, as well as at online and land-based casinos everywhere. This also encouraged a few players to run their own individual private poker games, but a spate of police raids and armed robberies quickly discouraged these events from taking place.

Nevertheless, no matter what the motivation may be for the legalization of poker in Texas, there has never enough support shown in the legislature to get a bill signed into law. In both 2012 and 2013, Senator Rodney Ellis did support bills that would legalize poker in the state’s casinos, but there was never enough co-sponsorship to help push the bills through past the next stage.

Joe Barton, a US Representative of Texas, subsequently became one of the first legislators to promote legislation on a federal level to make online poker legal in America. In fact, it was Barton who proposed the Internet Poker Freedom Act in 2015 after earlier attempts in 2011 and again in 2013, but unfortunately these efforts never got off the ground.

Poker Clubs

Poker games for money are not legal in Texas, so to get around the law a number of private poker clubs have opened up for business in the state. One of the most recent venues to open in August of 2017 was the Post Oak Poker Club located in Houston. Running this poker club is similar to running a country club, except one that revolves around the game of poker, and with the club making money from membership and joining fees,

Houston Poker Clubs Legal