Texas Online Poker & Gambling Legislation

 


Poker wouldn’t be poker without Texas. After all, without Texas, we’d all just be playing plain old hold’em. Without Texas, we wouldn’t have some of the game’s most enduring legends, such as Doyle Brunson, Amarillo Slim, and WSOP founder Benny Binion.

No-limit Texas Hold’em made Texas an indelible part of poker. Card players in the Lone Star Star love poker, both in land-based casinos and online poker. This page discusses the Internet poker rooms available to Texas poker players in this Guide to Playing Online Poker in Texas.

If you came here looking for how to play online poker in Texas or the tips on the best Texas poker sites, we suggest you read our real-money poker guide.

Current Updates for TX – Laws,  Legislation & House Bills

Poker players have fought for legalized poker for years, whether in Texas online poker rooms or in brick-and-mortar establishments. In 2012-2013, Senator Rodney Ellis introduced casino bills that included the legalization of poker, but Ellis received no support from his fellow lamwakers.

Since then, Texan entrepreneurs took the initiative. Private poker clubs have popped up around Texas, mostly in large cities like Houston and Dallas. Players don’t pay a rake or tournament fees. Instead, they pay membership or entrance fee, similar to a country club. The clubs make money from membership fees, seat rental fees, and food and beverage sales.


Poker clubs operate in a grey area. Local law enforcement shut down some poker clubs, but some in other towns remain open and assert their rights legally. A court ruling might decide the law, as the legislature won’t legalize Texas poker anytime soon.


AG Ken Paxton Dithers on Live Poker Rooms


The most recent news out of Texas is that Attorney General Ken Paxton will not be issuing any type of decision regarding the live poker rooms. State Representative Geanie Morrison formally asked Paxton if poker rooms that charge membership fees but don’t charge rake permitted are legal. Paxton officially refused to answer. A spokesperson for his office said that it is a legal matter being litigated in the courts, so courts should resolve the issue.


In 2018, Attorney General Ken Paxton said he would not issue any type of decision regarding the live poker rooms. State Representative Geanie Morrison formally asked Paxton if poker rooms that charge membership fees — but don’t charge rake — are permitted under the current law. Many state lawmakers have been asking the same question, but Paxton officially refused to answer. A spokesperson for his office said that the courts should resolve the issue.


Texas Poker Clubs – A Legal Gray Area

Poker clubs around Texas continued to operate as usual until May 1, 2019.


The Harris County District Attorney’s Office and Houston Police Department coordinated to raid the two largest poker clubs in Houston on May 1. Nine owners and managers from the Post Oak Poker Club and Prime Social Poker Club were arrested and charged with money laundering as a part of engaging in organized crime activities. The two clubs’ bank accounts were also frozen and all funds seized. District Attorney Kim Ogg said, “Poker rooms are illegal in the state of Texas.”


Interestingly, however, all charges were dropped in July. All money was returned. The DA’s office commented that the dismissal of charges was the result of “multiple potential conflicts of interest” within her office. It seems that a contract employee of her office also worked for a law firm that tried to extort money from the two poker clubs while conducting an investigation of them. Said law firm – Jones Walker – then became the target of a lawsuit by Prime Social in early September.


Texas Rep. Eduardo Lucio introduced Texas House Bill 1275 and Texas House Joint Resolution 61 to the House in February 2019. HR 1275 would regulate land-based sports betting and impose a 6.25% tax. HRJ 61 would let Texans vote on a constitutional amendment to legalize sports-books through a statewide vote.


Type/Code                                                                   Summary

State Code Section(s)                                                                         PEN.10.47; CIV.6     

Definition of Gambling                       A person commits an offense if he makes a bet on the partial or                                                                final result of a game or contest or on the performance of a                                                                        participant in a game or contest; makes a bet on the result of any                                                                political nomination, appointment, or election or on the degree of                                                             success of any nominee, appointee, or candidate; or plays and bets                                                             for money or other thing of value at any game played with cards,                                                             dice, balls, or any other gambling device.


Definition of Gambling Device           Any electronic, electromechanical, or mechanical contrivance                                                                 that for a consideration affords the player an opportunity to obtain                                                              anything of value, the award of which is determined solely or                                                                     partially by chance, even though accompanied by some skill,                                                                     whether or not the prize is automatically paid by the contrivance.                                                               The term includes, but is not limited to, gambling device                                                                         versions of bingo, keno, blackjack, lottery, roulette, video poker,                                                              or similar electronic, electromechanical, or mechanical games, or                                                                                         facsimiles thereof.

Definition of Bet                             An agreement to win or lose something of value solely or partially                                                                                     by chance.

 Online Poker/Gambling             There have been no proposals in the state legislature that would                                                                   legalize online poker or internet gaming of any kind.

Live Poker                                      The live poker offered at card-rooms in major cities in Texas                                                                      advertise as membership club. No rake is taken from the poker                                                                 games, though there are fees to enter or belong to the clubs. So                                                                 far, there have been no court decisions that have closed these                                                                                             poker rooms.

Casinos                                             There are no casinos in Texas, though card rooms exist as                                                                                         entertainment venues.

Sports Betting                                    HR1275 and HJR 61 would regulate Texas sports betting.

   DFS                                             A proposal to legalize daily fantasy sports was proposed in 2017,                                                                         but died in committee.

Other Forms of Gambling             Horse and greyhound racing, on-track pair-mutual betting, lottery,                                                              social gambling, bingo and charitable gambling, contests of skill.

Texas Gambling & Poker Laws Summarized


Texas Daily Fantasy Sports Laws – Is It Legal?

In January 2016, Texas Attorney General Ken Paxton announced that daily fantasy sports gaming was illegal in Texas. Fan-duel announced it would no longer offer games to Texans after May 1, 2016. Draft-Kings filed suit in a Texas court, asking the court to rule DFS legal. That court case has not been resolved yet.


8-Liners in Texas Towns

One other oddity exists on the Texas landscape. Under Texas State law, the gaming machines called 8-Liners or “maquinitas“ are legal if local municipalities approve them. and the owner does not pay winnings in cash. Winners are paid in store credit, gas, or groceries. Despite that limitation, 8-liners generate $5.4 billion in revenues each year.


8-Liners create a problem for local law enforcement. Business owners often pay cash for winnings, which is illegal. Just in the past 3 years alone, Texas law enforcement has raided 8-liner operations for illegal cash payments in the following cities: San Antonio, Poth, Athens, Cap City, Eustace, Seven Points, Tool, Gun Barrel City, San Benito, Rio Grande City, La Joya, Cameron County in the Rio Grande Valley, and McAllen.


Texas Poker Sites – Where to Play Online Legally?


Most Texas poker players drive to Oklahoma or Louisiana to gamble. Several of the largest casinos (by gaming space) in the world are located an hour north of Dallas: Winstar Casino in Thackerville and Choctaw Casino in Durant, Oklahoma. The casinos in Bossier City and Shreveport, Louisiana also get most of their business from Dallas-Fort Worth.

Texans who want to know the closest card room should read our list of real money poker rooms.

Is Online Poker Legal in Texas?

As a rule of thumb, a poker site that accepts American players will also accept poker players from Texas. It’s NOT illegal to play online poker in Texas. In fact, unlike Washington, Texas poker players can legally play on offshore poker sites, like Bovada. The only illegal activity is owning or operating a poker room.


The rooms we’ve listed above are Texas-friendly, but they’re far from the only online poker rooms where Texans can play real-money games. Read through our list of online poker — Texas exists in a gray area, but Texans can play at most US-friendly sites.


What Forms of Gambling Are Legal in Texas?

Poker players are naturally curious about whether or not playing poker for real money online is legal under Texas law. Offering legal advice is not a function of this website (nor of anyone beyond legal professionals), but we can help you sort through the fundamentals of poker laws in Texas.


What counts as gambling in Texas?

The definition of “bet” (Section 47.01(1)) is short and sweet – it’s when you enter into an understanding “to win or lose something of value” in an activity that involves chance.  Specifically, the winning or losing must occur “solely or partially by chance.” The definition includes the phrase “partially by chance,” so a bet is anything with any element of chance. The definition of “gambling device” (Section 47.01(4) clarifies the law further.


Making illegal bets is a misdemeanor in Texas (Section 47.02). Those who break the law could face a half-dozen separate charges. Gambling promotion (Section 47.03) is a misdemeanor, and covers operating, promoting, processing bets and selling lottery chances. Possession of Gambling Device, Equipment, or Paraphernalia (Section 47.06) is also a misdemeanor.


Will Texas Regulate Internet Poker?

It’s unlikely Texas will regulate online poker. Texas proponents of land-based casino gambling faced a long fight in the past. Texas online poker is even further away from approval.

Texas Gambling Facts

Texas regulates lottery betting and pair-mutual bets on racing, and charitable gambling (raffles and games of bingo).텍사스홀덤사이트

Tribal gambling is complicated. Naskila Gaming at Livingston owned by the Alabama-Coushatta Tribe, Kickapoo Lucky Eagle Casino at Eagle Pass, and Speaking Rock Entertainment by the Tigua Tribe of the Ysleta del Sur Pueblo each operate casino gaming. All three tribes are embroiled in multi-year legal battles with the state of Texas.

Purely social gambling in a private place or regulated gambling activity is legal, if the house makes no profit.


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