Poker News: “A new bill being proposed in Texas could threaten the existence of dozens of poker rooms and social clubs that have sprouted up throughout the southwestern state in recent years.
While collecting rake is illegal in Texas, the law does allow for gambling to occur in a “private place” where every player has a fair shot at winning and there is no economic benefit, allowing card rooms to act as social clubs and charge membership and seat fees instead of taking rake out of cash game pots.
House Bill 732, filed by Democratic Rep. Gene Wu, would address this loophole. Specifically, the bill would amend Texas Penal Code 47.04 to state that gambling must occur in a “private residence,” delivering a blow to the legal protection that card room owners have used to defend their businesses.
“These legal defenses were written to allow for legal private gaming in the state without authorizing commercial operations,” Wu told the Dallas Observer. “In recent years these defense(s) have been used to create private poker clubs that attempt to operate within their language, while creating for-profit gaming enterprises.””