It’s been nearly a month since the Lodge Card Club was raided by the Texas Alcoholic Beverage Commission.
But the month-mark will be a key point in the commission’s case against the Austin-area poker room.
As part of the raid, the TABC froze the Lodge’s assets. The poker room doesn’t have access to any of the cash on hand at the time of the raid or to its bank accounts. As a result, the company doesn’t have the ability to pay any of the outstanding cash chips or tournament prizes.
In a 22-minute video released on Tuesday, Lodge co-owner Doug Polk released a video giving an update about the situation. In it, he said that the state had until April 9 to justify keeping the room’s money.
“According to civil forfeiture laws in Texas, when the government seizes assets from an entity, they have 30 days to file for civil forfeiture,” Polk said. “Which is basically why they have a right to keep the money. So, that means on April 9, there will have to be a filing for civil forfeiture if they want to hold onto these assets.”
Polk clarified that April 9 doesn’t serve as an end date for the investigation, but that it does mark when the room might get its money back.
“They have to make a claim on those assets or return them,” he said.
Polk Reiterates Personal Player Funds Guarantee
It’s unlikely the state files that paperwork before that date. But even if the state declines to file a civil forfeiture, Polk didn’t indicate it would mark the start of chip redemption and payment of outstanding tournament prizes.
That likely comes at the end of the investigation. But returning funds would certainly be a big step towards a final resolution.
However, Polk also reiterated his stance that if for some reason, The Lodge can’t pay players, Polk will do it out of his personal checking account.
“If The Lodge does not make these people whole, I will,” said Polk. “I am taking on seven figures in personal liability. Not because I have to. But because I want to and I don’t want anyone who is involved in this to end up losing their money.”
Still No Charges, Situation Remains Murky
The TABC didn’t release the affidavit until a few days after its March 10 raid. Once it was released on March 12, it showed they were investigating five possible charges:
- Engaging in organized criminal activity
- Money laundering
- Promotion of gambling
- Keeping a gambling place
- Possession of a gambling device, equipment or paraphernalia
Polk was quick to explain the first two possible charges, as they are the more serious charges. Since the TABC believes the operation is illegal gambling, then the business itself would be organized crime, and all of the transactions associated with it would be considered money laundering.
At the time of publishing, the TABC still hasn’t filed any charges against The Lodge nor has the state arrested anyone involved.
Thus, it appears the whole investigation centers around the legality of Texas poker clubs.
What Constitutes “Private Place” And “Economic Benefit?”
At the start of the video, Polk describes his initial journey from Las Vegas to Austin and how he started the poker room.
He consulted with lawyers and learned that gambling was allowed as long as it fit three key distinctions:
- It was happening in a private place
- There was no economic benefit other than personal winnings
- Aside from any skill edge, the risk of losing and chances of winning were the same for all participants
His legal team said that as long as membership was mandatory for people to play poker, it would fulfill the “private place” requirement. They also said that “economic benefit” was in regard to the poker game itself. In other words, clubs couldn’t take a rake from each pot.
Polk said The Lodge has never taken a rake and that the undercover agents were both members while they conducted their two-year pre-raid investigation.
Lastly, Polk said that the room was not permanently closed. The Lodge laid off its more than 200 employees, but they only plan to stay closed for as long as it takes for the company to reach a resolution with the TABC.
You can watch the entire video below:
