Faced with an ongoing investigation from the Texas Alcoholic Beverage Commission (TABC), reports surfaced Tuesday that The Lodge Card Club won’t reopen anytime soon.
Moreover, the poker club’s staff was officially laid off.
The TABC, IRS, and Williamson County Sheriff’s Office raided the property on March 10. They said the poker room was suspected of money laundering and illegal gambling.
Poker Fraud Alert Publisher Todd Witteles was one of the first to report the development. And other people involved in the situation confirmed it as time went on.
“No charges have been filed, but the Williamson County DA’s Office insists Lodge operated illegally,” he said on social media. “Lodge denies this. Lodge attorneys have stated it would be unwise for the club to reopen until this matter is resolved, especially because another seizure could otherwise occur.”
AG Opinion Casts Doubt On Legality Of Poker Club
Along with some insight on the club’s operations, Witteles released an opinion from then Texas attorney general and now governor, Greg Abbott.
“A holder of an on-premesis alcoholic beverage permit may not, without violating both section 47.04(a) of the Penal Code and Rule 35.31 of the Alcoholic Beverage Commission, host a poker tournament in which participants risk money or any other thing of value for the opportunity to win a prize,” the opinion says.
That opinion may be the legal basis for the investigation. It potentially puts the state’s poker industry in jeopardy, at least at venues that sell alcohol.
Polk Says Players Will Be Paid … Eventually
After the raid, The Lodge’s bank accounts were frozen and players who had chips at the time have yet to be paid out. Co-owner Doug Polk appeared to confirm some of Witteles’ reporting earlier in the week.
“There is no time frame, can’t do anything until it’s all settled with authorities,” he told an anonymous Twitter/X user on Sunday.
Polk remains adamant that players with chips will eventually get paid. He personally guaranteed repayment after the initial raid and reaffirmed that this week.
“People will get taken care of, but only once everything is approved,” he said. “This isn’t a game.”
All Texas Poker Clubs Could Be In Trouble
Poker in Texas generally follows a country club-style format. Players pay membership dues or hourly fees. There’s no traditional rake. Club owners say this system allows them to fall within the law as a private club. Not everyone agrees with that assertion.
“I think the poker clubs have some severe legal problems,” Gaming legal expert and professor I. Nelson Rose has written on his Gambling and the Law blog.
“Arguing that poker, especially poker tournaments, are games of skill – that won’t work in Texas. ‘Gambling’ is defined as playing or betting for money, ‘at any game played with cards.’ A person commits the crime of ‘gambling promotion,’ if he intentionally or knowingly operates or participates in the earnings of a gambling place. And ‘keeping a gambling place’ is a separate crime.
“Eliminating the rake does prevent the game from being a ‘percentage game. But it does not prevent the club owners from receiving an economic benefit from the gambling, especially when they charge seat rentals only to players.”
