For decades poker players in Texas found ways to play their games. In the last two decades, they started creating clubs resembling membership-only establishments…that offer poker.
The complicated nature of Texas and its gambling laws has led to a complicated solution. There are enough ambiguities in the laws and in the membership club model that both factors inspired people to open poker clubs. Instead of charging rake, as specifically prohibited by law, clubs could charge a fee to be in the building in the form of memberships.
There are many problems with the setup of poker clubs in Texas, the most prominent of which is the lack of police cooperation and security. When the law is unclear about the legality of the clubs, law enforcement entities are often left to take their cues from government officials. And their views often vary from municipality to municipality, city to city.
It is that confusion that led to a recent poker club raid in the Dallas/Fort Worth area.
And it has every poker club owner and player in Texas a bit on edge.
Watauga Raid
The Watauga Social Lounge promotes itself as a “premier private poker club,” a “safe, comfortable and upscale lounge for poker events and tournaments.” The club is less than one year old.
On October 9, the club was operating like every other day of the week, though this day brought 54 players back for the final day of a tournament. The Fall Classic Poker Tournament was a $420 buy-in event with multiple starting days and a $100K guarantee. Its 369 entries resulted in a prize pool that soared to $132,840. Players were competing for the title on that Sunday.
With that in mind, the club’s management called for security guards to come in at 1pm instead of the usual 6pm.
Law enforcement had a different plan.
Judge George Gallagher signed a warrant two days prior to authorize a raid on the club. Officers wanted to get into the room to search for illegal gambling devices, like video poker machines and roulette wheels, as well as all money, records, receipts, papers, and all items of value, including ATMs. Moreover, they wanted to see behind the covered windows.
https://twitter.com/ChadAHolloway/status/1579237589286285312?s=20&t=nd_2KYZ3kHyh3gK8rpBiaQ
On that Sunday, as the tournament began to play its final day and cash games played out in other parts of the room, the Tarrant County Sheriff’s Office (specifically the Game Room Enforcement Unit) raided the club.
The masked police took everything, including tables and chairs, chips and cash, even decks of playing cards. They literally pulled a tractor trailer truck up to the premises to load everything into it.
https://twitter.com/DoughHolder/status/1579224605411389441?s=20&t=eTzSCBb_1qQVqKeS1HWoyA
The DEA (United States Drug Enforcement Administration) accompanied multiple police officers to the location.
In the process, they issued 49 citations for gaming violations to people in the club and issued fines of as much as $411 per player. They also arrested 10 people who were management and/or employees. They all since posted bond. (After being arrested on Sunday afternoon, they waited in jail to see a judge until Tuesday morning. The judge then allowed them to post bond.) The charges included:
--Keeping a gambling place--Gambling promotion--Engaging in organized criminal activity
However, it's important to note that the charges are not yet official. District Attorney Sharen Wilson has yet to decide if she wants to make the charges official, and she has several months in which to do that.
According to the Watauga Social Lounge on Facebook, the authorities took $200K in cash, including the $132,840 from the tournament prize pool, and all of their equipment. They’re asking everyone who received a citation that day to contact joev@wataugapoker.com, as the club’s management is in talks with an attorney to find out what can be done.
“We sincerely apologize for any inconvenience this has caused to our members, to our staff, to the poker community and to the city of Watauga. Thank you for the love and support we have been given. We hope to open back up soon.”
https://www.youtube.com/watch?v=GICCTaWOtno
Remembering Houston Raids
Back in 2019, The Harris County District Attorney’s Office and Houston Police Department took it upon themselves to raid two Houston poker clubs: Post Oak Poker Club and Prime Social Poker Club. The authorities raided the clubs, arrested nine people (owners and managers), froze company bank accounts and seized bank balances. District Attorney Kim Ogg charged the with crimes like felony money laundering and engagement in organized crime.
Only two and a half months later, however, the Ogg dropped all charges. She cited possible conflicts of interest within her office. In fact, one of the people in her office was a possible defense witness who was also a former contract employee and consultant for the DA.
https://twitter.com/zachdespart/status/1151661728872194048?s=20&t=bztrD3dGkEv15YCWp3wmsA
Texas Card House Case
To complicate matters further, the Texas Card House in Dallas is in the middle of a legal fight with the city’s Board of Adjustment. That board revoked Texas Card House’s certificate of occupancy earlier this year, but the card room management won an appeal to keep its doors open.
The resulting lawsuit forced city officials to take sides, and a judge recently determined that the matter should go to trial.
Texas Card House CEO Ryan Crow hopes the case goes to the Texas Supreme Court or higher. He plans to continue the legal battle as long as possible. Not only will this affect Dallas poker clubs, which are some of the largest in the state, but a State Supreme Court case could impact all Texas poker clubs.
https://twitter.com/Kevmath/status/1574487055907930121?s=20&t=nd_2KYZ3kHyh3gK8rpBiaQ
