Texas Card House in Dallas gets notice revoking license to operate -- legalized poker in the city may be dead soon

Maybe this wasn't the best time for Doug Polk to buy a poker room, after all.

After operating in relative obscurity, Texas poker has received a ton of attention in poker news over the past 6 weeks, for various unrelated matters.

However, arguably the biggest incident has just occurred.

Texas Card House, the largest room in Dallas, had its "certificate of occupancy" revoked by the city, which essentially shuts down the business. The stated reason was, "Keeping a Gambling Place".

Texas card rooms are technically private clubs, not casinos. They are not allowed by law to take a rake, and the games themselves are unregulated, essentially relegated to home game status. The legality of such rooms has always been up in the air. However, the city of Dallas was very aware of what Texas Card House really was, when its operational license was granted in October 2020.

https://texascardhouse.com/wp-conten...-Black-SVG.png


Texas Card House is fighting the notice, and is still in operation as of today. Here is their statement, as posted by Allen Kessler on Facebook (who isn't affiliated with them, btw):

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As we understand the concern, we can assure you that we would honor any outstanding chips or balances for our members in the event that we are shut down. However, we feel strongly about our ability to overcome this battle and foresee this process taking a long time in the interim. One of the many perks of playing at TCH locations, we are bigger than just one location. Additionally, we back our product 100% and are committed to doing the right things by our players, staff, and community.

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It is likely that TCH is telling the truth about cashing people out if they get completely shut down. Indeed, they have other locations in Texas, and would never want to sully their name by screwing people at the Dallas location.


There are two other card rooms in Dallas: Poker House Dallas, and Shuffle 214. They are also operating, and won't comment on their status with the city. However, in an article by Haley Hintze on poker.org, she noted that a Dallas councilman said that multiple rooms' certificates of occupancy were revoked.



If Dallas card rooms really get completely shut down, and there isn't a tremendous backlash, it may encourage copycat actions in other Texas cities with similar card rooms, such as Houston and Austin. It is also possible that the state government of Texas could clamp down on this at any time.

Dallas is the most conservative of the big 3 Texas cities so hopefully the other two are more laissez fares

This sort of random, selective enforcement is not good for a sustainable business model. Hopefully Polk and others didnt invest too much money or that they make it long enough to recoup what they put in.

I mean, it looks like some local yocal with the right political connections could take a bad beat one night and decide to start the process for revoking the license just out of spite. Or maybe someone wants the location at the strip mall for their own business reasons. Too random.

Between a guy with an AR 15 trying to rob a club (thankfully no one was hurt except for the injuries to the hero security guard), all of sudden licenses being revoked in Texas & the crypto crash…this certainly hasn’t been a great week for Polk. He’s also tweeting that he’s stuck 50 K playing low stakes (for him) at the Lodge. Next thing you know the government is going to recall his self-bronzer products a week after it’s on the shelves. Certainly a rough week or so leading up to the grand re-opening of the Lodge.

In all seriousness, I wonder if interests outside of Texas are concerned with Card Room legalization there. I know casinos aren’t supposed to give a shit about poker, but then again there was Sheldon Adelson. I think this is a mixture of mostly political, but with some financial concern in the long term. Also let’s be honest, some authorities like to fuck with people by exerting their power. I think that’s a component as well. Some aren’t going to be so keen on some fancy-pants youtubers having success down there.

Somebody neglected to grease the right wheel.

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Originally Posted by JeffDime

Between a guy with an AR 15 trying to rob a club (thankfully no one was hurt except for the injuries to the hero security guard), all of sudden licenses being revoked in Texas & the crypto crash…this certainly hasn’t been a great week for Polk. He’s also tweeting that he’s stuck 50 K playing low stakes (for him) at the Lodge. Next thing you know the government is going to recall his self-bronzer products a week after it’s on the shelves. Certainly a rough week or so leading up to the grand re-opening of the Lodge.

In all seriousness, I wonder if interests outside of Texas are concerned with Card Room legalization there. I know casinos aren’t supposed to give a shit about poker, but then again there was Sheldon Adelson. I think this is a mixture of mostly political, but with some financial concern in the long term. Also let’s be honest, some authorities like to fuck with people by exerting their power. I think that’s a component as well. Some aren’t going to be so keen on some fancy-pants youtubers having success down there.

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The Chickasaw tribe (Winnstar casino) has spent mega cash greasing politicians to keep legal gambling out of Texas.

It's gambling establishments in neighboring states, specifically Oklahoma (WinStar) trying to influence local lawmakers in Texas to ban card clubs.

There was also some shady stuff that went down a couple years ago in Houston shutting down poker clubs.

Unfortunately, the Texas card clubs appear to have no professional representation or political strategy in this regard. TCH appears to have a fly-by-night outfit called "Social Card Clubs of Texas". Their website appears to be defunct and no posts on their social media for three years. So no real entity nor representatives actively working to protect poker businesses or players.

Will probably take businesses being shut down for the owners to take it seriously and hire real professionals to take care of these problems.

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Originally Posted by Cerveza Fria

Somebody neglected to grease the right wheel.

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With four wheels there has to be a lot of grease.

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Originally Posted by jokerswild

It's gambling establishments in neighboring states, specifically Oklahoma (WinStar) trying to influence local lawmakers in Texas to ban card clubs.

There was also some shady stuff that went down a couple years ago in Houston shutting down poker clubs.

Unfortunately, the Texas card clubs appear to have no professional representation or political strategy in this regard. TCH appears to have a fly-by-night outfit called "Social Card Clubs of Texas". Their website appears to be defunct and no posts on their social media for three years. So no real entity nor representatives actively working to protect poker businesses or players.

Will probably take businesses being shut down for the owners to take it seriously and hire real professionals to take care of these problems.

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I didn't even think of WinStar, but this is a great point.

WinStar, while in Oklahoma, serves the Dallas market. I can totally understand how they might throw some cash in the direction of Dallas-area politicians via lobby efforts, in order to get these poker rooms shut down.

This could be simialr to online poker of April 2011. Everything seemed to be going fine, and then all of a sudden the government showed up and shut down the biggest three sites, and that was that -- at least for US players on those sites. Now, yeah, it turned out two of those sites had stolen all the money on deposit, but even the government didn't realize that at the time. Anyway, I'm afraid these Texas rooms might suffer a similar fate, where one day they're just gone. If this does happen, I'm guessing people will be allowed to cash out, and then that will be that. The bottom line is that I don't think there will be a lot of outrage from the population of any of these towns if any of these are banned.

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Originally Posted by Dan Druff

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Originally Posted by jokerswild

It's gambling establishments in neighboring states, specifically Oklahoma (WinStar) trying to influence local lawmakers in Texas to ban card clubs.

There was also some shady stuff that went down a couple years ago in Houston shutting down poker clubs.

Unfortunately, the Texas card clubs appear to have no professional representation or political strategy in this regard. TCH appears to have a fly-by-night outfit called "Social Card Clubs of Texas". Their website appears to be defunct and no posts on their social media for three years. So no real entity nor representatives actively working to protect poker businesses or players.

Will probably take businesses being shut down for the owners to take it seriously and hire real professionals to take care of these problems.

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I didn't even think of WinStar, but this is a great point.

WinStar, while in Oklahoma, serves the Dallas market. I can totally understand how they might throw some cash in the direction of Dallas-area politicians via lobby efforts, in order to get these poker rooms shut down.

This could be simialr to online poker of April 2011. Everything seemed to be going fine, and then all of a sudden the government showed up and shut down the biggest three sites, and that was that -- at least for US players on those sites. Now, yeah, it turned out two of those sites had stolen all the money on deposit, but even the government didn't realize that at the time. Anyway, I'm afraid these Texas rooms might suffer a similar fate, where one day they're just gone. If this does happen, I'm guessing people will be allowed to cash out, and then that will be that. The bottom line is that I don't think there will be a lot of outrage from the population of any of these towns if any of these are banned.

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Given the news with Matusow I guess the facts were a little presumptious. As for people not complaining. Dallas sure its conservative but Austin I just dunno.. Too many political types like playing poker and always have and thats the capital of Texas as well as the core of the liberals in Tx as a whole.

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Originally Posted by Dan Druff

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Originally Posted by jokerswild

It's gambling establishments in neighboring states, specifically Oklahoma (WinStar) trying to influence local lawmakers in Texas to ban card clubs.

There was also some shady stuff that went down a couple years ago in Houston shutting down poker clubs.

Unfortunately, the Texas card clubs appear to have no professional representation or political strategy in this regard. TCH appears to have a fly-by-night outfit called "Social Card Clubs of Texas". Their website appears to be defunct and no posts on their social media for three years. So no real entity nor representatives actively working to protect poker businesses or players.

Will probably take businesses being shut down for the owners to take it seriously and hire real professionals to take care of these problems.

---

I didn't even think of WinStar, but this is a great point.

WinStar, while in Oklahoma, serves the Dallas market. I can totally understand how they might throw some cash in the direction of Dallas-area politicians via lobby efforts, in order to get these poker rooms shut down.

This could be simialr to online poker of April 2011. Everything seemed to be going fine, and then all of a sudden the government showed up and shut down the biggest three sites, and that was that -- at least for US players on those sites. Now, yeah, it turned out two of those sites had stolen all the money on deposit, but even the government didn't realize that at the time. Anyway, I'm afraid these Texas rooms might suffer a similar fate, where one day they're just gone. If this does happen, I'm guessing people will be allowed to cash out, and then that will be that. The bottom line is that I don't think there will be a lot of outrage from the population of any of these towns if any of these are banned.

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It's possible they get kicked out of a few larger cities if they don't get a handle on it. The state law is somewhat vague on the matter. It doesn't say you can't join a club and play poker. But on the other hand, it also doesn't say a city has to let a poker room do business. While there's a loophole in the law that seems to let people play poker in these settings, there's also a loophole that doesn't prohibit a city from banning them. These rooms are clearly popular enough to be making a profit now and the owners should have known something like this was coming. But when it comes to circumstances like this a lot of business owners think they're invincible--right up until they get shut down.


Sec. 47.04
Keeping a Gambling Place

(a) A person commits an offense if he knowingly uses or permits another to use as a gambling place any real estate, building, room, tent, vehicle, boat, or other property whatsoever owned by him or under his control, or rents or lets any such property with a view or expectation that it be so used.

(b) It is an affirmative defense to prosecution under this section that:

(1) the gambling occurred in a private place;

(2) no person received any economic benefit other than personal winnings; and

(3) except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for all participants.

(c) An offense under this section is a Class A misdemeanor.

BUMP

They won their appeal. Crisis over, and Doug Polk is probably sleeping a bit easier tonight.

This was from "Dream Crusher" on 2+2, who watched the hearing:

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Originally Posted by Dream Crusher

The City of Dallas's Board of Adjustment just unanimously voted 5-0 in favor of TCH Dallas to reinstate their certificate of occupancy.

I thought the city attorney came out pretty strong while the TCH attorney came out pretty weak. The board shredded the Dallas city attorney though and then the TCH attorney finished strong rebutting the Dallas city attorney's previous points.

IMO, the crux of it came down to the fact that the city did do it's due diligence when TCH first opened and didn't really have a valid reason to pull the certificate of occupancy. The board can't really render a legal opinion, and the city's attorney's legal opinion alone wasn't enough to convince them considering the city doesn't even have the support of the DA, the state attorney general, or the police department on this, nor have there been any arrests/prosecutions or legal precedents that would give the board reason to side with the city on revocation of the certificate of occupancy.

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