Make Gambling Legal In Texas
Eight states now allow gambling on the NCAA basketball tournament after the Supreme Court's decision to lift the federal ban on sports betting last year. However, if this legislation passes, Texas. The laws regarding gambling in Texas are somewhat complex. This is due, in part, to the fact that gambling can take many forms and occur in many places. It’s helpful to take a broad view of the situation and then take a closer look at some of the specifics of Texas gambling laws. According to Section 47.02 of the Texas Penal Code, gambling is. For the most part, gambling is regulated by state law, so whether a particular instance of gambling activity is illegal depends on the law in your state. However, online gambling is illegal throughout the country under federal law. You can report online gambling to the FBI. Live gambling that violates state law should be reported to the.
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.
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.
I remember in the late 1990s and early to mid-2000s, I used to play poker at a lot of the underground poker rooms in Dallas. Many of them had been in business for years. At some point, though, they started getting raided by the cops.
This continued until all the places I knew about had been closed. I vaguely understood that there were underground casinos in Dallas, too, but I didn’t play at any of them. I know that many bars and gas stations had the equivalent of slot machines – in Texas, they’re called 8-liners.
At one time, most of the mid-sized cities had even opened up so-called “game rooms” featuring these 8-liners. Most of them are now closed, too. The only one I ever played in with any regularity was in Farmersville.
It was fun, but you couldn’t win real cash there. You could only cash in points for merchandise, most of which looked like it had been bought on sale at Dollar General. I remember gardening tools and a 6-pack of canned corn.
And it made me wonder why the Texas gambling scene doesn’t have real casinos.
In this post, I’m going to delve into that subject a little more.
Texas Has Strict Gambling Laws
The main reason Texas doesn’t have casinos is because casino gambling – all types of casino gambling – are illegal in the state of Texas. In fact, Texas has some of the strictest gambling laws in the country.
This all stems from Penal Code 47.01, which is the statute making gambling illegal throughout the state.
The only exceptions are bets on dog and horse racing.
Not only that, but the law specifically enumerates which gambling activities are illegal in the state.
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Which Types of Gambling Are Illegal in Texas?
If you’ve read any of my previous posts, you already know that gambling has any number of subcategories. The state of Texas agrees. After all, they’ve enumerated and listed the specific types of gambling which are illegal throughout the state.
The first kind of gambling that’s illegal in Texas is the casino game. Any kind of game played in a casino is illegal in Texas, and this includes real money blackjack, craps, roulette, slots, and video poker. This also applies to online gambling, although I’ve never heard of anyone getting in trouble for playing online casino games.
The only exception is if you’re on Native American land. I’ll have more to say about this later in the post. Stay tuned.
Sports betting is also illegal, with the exceptions of betting at the dog track or the horse track. Betting on sports is punishable by a $500 misdemeanor fine. It applies to online as well as in-person or over-the-phone betting.
This didn’t seem to slow down any of the bettors at my local bar who placed wagers with their local bookie.
Texas also has laws related to so-called social gambling. This is how Texas categorizes bingo games or charitable raffles.
These activities are legal when operated for the benefit of charities in the state. Otherwise, they’re illegal.
Strictly speaking, it’s even illegal to play in a friendly home poker game.
What About the Lucky Eagle Casino?
If you’ve heard of a Texas casino called the Lucky Eagle Casino, then you’ve found one of the rare exceptions to the statement that there are no casinos in Texas.
The Lucky Eagle Casino is open Sunday through Thursday from 10 a.m. to 2 a.m., and they stay open until 4 a.m. on Friday and Saturday night.
They have over 1200 slot machine games, but they also offer table games including blackjack, craps, roulette, and even keno. They have over 55,000 square feet of casino space with both smoking and non-smoking sections.
I saw no mention of baccarat on their site, but I suspect baccarat isn’t a big draw in Texas.
Lucky Eagle also hosts bingo games in their event center except on Friday and Saturday night.
The keno lounge offers multiple keno games, including speed keno and 50 cent keno.
Why is the Lucky Eagle Casino allowed to operate in Texas?
They’re a Native American casino, owned by the Chehalis Tribe, which has a compact with the state government allowing them to operate.
What About Naskila Gaming?
Naskila Gaming is another notable exception to the “no casinos in Texas” generality. It’s another example of a Native American casino. They’re owned by the Alabama-Coushatta Tribe.
They’re located on the Indian reservation near Livingston, Texas, and they’re open 24/7.
They only offer Class II slot machines, and they have about 800 games to choose from.
Naskila Gaming also has multiple restaurants onsite, including a Nathan’s Hot Dogs and a Mexican café. They even have a grill serving traditional American fare.
There’s some controversy related to whether they’ll be able to continue operating in Texas. If you visit their website, you’ll see notices asking their patrons to support HR 759 to keep them open.
HR 759 intends to clarify that Naskila Gaming IS acting legally because they’re on tribal land.
Texas has three Native American tribes that are legally recognize by the federal government. The Kickapoo Tribe is the only one currently allowed to offer Class II gaming.
HR 759 aims to correct that inequity. And, just to be clear, it doesn’t make it legal for Naskila Gaming to offer blackjack, craps, or roulette. They must stick with the electronic bingo gambling machines.
The legislation also authorizes the Ysleta del Sur Pueblo Tribe to offer gaming on their reservation.
What About Casino Cruises?
One way casino companies circumvent casino gambling laws is to offer casino gambling on cruise ships. These ships generally go out far enough in the water to get outside the jurisdiction of the state where they’re docked. Several casino cruises are available from Texas ports.
These include Carnival Valor Casino, Carnival Breeze Casino, Carnival Freedom Casino, and Jacks or Better Casino.
The last time I went on a casino cruise, I played Texas holdem the entire time.
It’s common knowledge among those in the know that the slot machine payback percentages on casino cruises are lousy.
Where Else Can You Gamble in Texas?
You’re legally allowed to bet on dog racing and horse racing in Texas. You must do so from the site itself, though. You have the following tracks to choose from:
- Gulf Greyhound Park
- Lone Star Park at Grand Prairie
- Sam Houston Race Park
- Valley Race Park
Of these, the only one I’ve visited was Lone Star Park at Grand Prairie. They have no casino facilities, but there’s enough horse betting action here to keep even the most avid action junkie entertained for hours (or days).
Lone Star Park at Grand Prairie
Admission to Lone Star Park is only $5, and the gates open at 5 p.m. The first race is run at 6:05 p.m.
They offer stakes races where they’ll either add money to the prize pool or they’ll have a minimum guaranteed prize pool.
Like a casino, Lone Star Park has a rewards program. It’s comparable to a slot machine players’ club at a casino.
Make Gambling Legal In Texas Roadhouse
You earn a point for every dollar you wager, but you also get additional points by placing wagers with the self-serve facilities. You also get two bonus points per dollar by betting on Lone Star Park and Remington Park races.
When you spend money at the concessions stand or in the gift shop, you get a point for every dollar you spend. You can redeem these points later.
Make Gambling Legal In Texas Hill Country
They have a variety of rewards available, but you can get an idea of what the points are worth by looking at the vouchers and food and beverage credits.
You can cash in 10,000 points to get a $10 food and beverage credit.
You can also cash in 20,000 points to get a $20 mutuel voucher. The ratio is the same for $50 and $100 vouchers, which would require 50,000 points and 100,000 points each.
I should point out that only a handful of gambling activities — including blackjack, poker, and sports betting — offer the opportunity to get a mathematical edge. Betting on horses – if you’re good at it – also offers that opportunity.
Conclusion
I’m not sure who said there are no casinos in Texas. There are at least two, and more depending on whether you count the racetracks and cruises.
You also have any number of businesses offering the equivalent of slot machine games called 8-liners.
I think the state government should go ahead and legalize and regulate gambling throughout the state. Right now, they’re just leaving all that revenue on the table.