DA seeks opinion on Texas Hold ’Em

Smith says public tournaments of popular poker game violate state’s gambling laws

By Cliff Hamilton
Odessa American

Hold up on the Hold ’Em.
District Attorney John Smith says public tournaments of the popular Texas Hold ’Em brand of poker violate the state’s gambling laws, whether they’re held in bars or as fund-raisers.
Smith requested an opinion from Attorney General Greg Abbott on whether Texans can play the game in a manner that does not break the gambling laws.
Smith said he was prompted to file the request after several bar owners and charity directors asked him about holding tournaments.
“Various ingenious ways of getting around (the gambling laws) have been suggested to me and other various prosecutors in Texas,” he wrote.
In his request, Smith wrote that the structure of Texas Hold ’Em tournaments may not fit the legal definition of gambling.
In a Hold ’Em tournament, players “buy in” to the game and receive a predetermined number of chips that don’t represent actual money. The object of the game is to earn the most chips, and the last few players in the game receive a percentage of the winnings.
“On its face, a poker tournament is probably considered gambling,” Smith wrote. “Certainly an argument can be made that the payoff at the end of the evening is the payment of a prize, award or compensation to the actual contestants who win a bona fide contest … of skill.”
In his request, Smith wrote that a tournament could be considered the same as a golf tournament where the winner receives a cash prize.
However, Smith said Wednesday that he thinks having a Hold ’Em tournament in a public place violates the law.
“You’re not playing a golf tournament in a bar,” he said. “As long at there’s a prize at the end of the game, it’s gambling.”
Texas law allows gambling in a private setting as long as every player has the same chance of winning and as long as “no person received any economic benefit other than personal winnings.”
In other words, the house can’t take a cut.
But the rules change when the gambling is in a public place, like a restaurant or bar.
“Really what’s at issue here is can you gamble in a bar,” Smith said, “and the answer is no. You cannot gamble for money, marbles or chalk in a bar. Period.”
Smith said he thinks public games at local bars or for charity organizations violate the law, and he said he thinks the attorney general will agree with him.
“Gambling is gambling,” he said.
Abbott’s opinion is due by June 20.
Dos Amigos owner Rick Purcell said he had thought about hosting a tournament.
“I’ve had a lot of people ask me about it. A lot of customers asked me about it,” he said. “I asked (the Texas Alcoholic Beverage Commission) about it, and they said ‘Absolutely not. It’s against the law.’ ”
Nancy Massey, owner of the Oasis Bar and Grill, said she had looked into starting a Hold ’Em tournament for her customers.
“We had talked about it,” she said. “It’s such a popular, popular thing right now.”
Massey said she quickly abandoned the idea after talking to Smith.
“You cannot have gambling where you have a mixed-beverage permit,” she said. “That was all I needed to know. It is against the law. I’m not going there.”
Smith said that tournaments for charities still violate the law because they’re in a public place.
“I would love to be able to say ‘Sure, as long as this is for charity. Knock yourself out,’ ” he said. “But if I do that for them, then I’ve got to take a look around at what I’m doing for the other citizens of this county. You just have to draw a line.”