Online Poker in Texas

Texas, the heart of America, is renowned not just for its vast landscapes and vibrant culture but also for its deep-rooted connection to the game of poker. Despite being the birthplace of Texas Hold’em, the Lone Star State presents a unique and complex landscape for online poker enthusiasts. Let’s delve into the current state of online poker in Texas, exploring its legal status, available platforms, taxation, and the illustrious players who call Texas home.

StatusOnline Poker is Illegal
Start DateN/A
Legal Poker RoomsNone
Shared LiquidityN/A
Legal Sweepstakes PokerStake.USClubs Poker, ClubWPT, GlobalPoker
Minimum Age18+
RegulatorTexas Attorney General (TAG)
State Tax5.5%

Status of Online Poker in Texas

One of the biggest travesties in the United States poker scene is that there are no state-licensed poker rooms in Texas – no Texas Hold’em in Texas. Card club owners have found legal loopholes to operate poker rooms based on membership, but the entirety of Texas poker is fragile. Texas stands at a crossroads when it comes to online poker. While the state is the birthplace of Texas Hold’em, it hasn’t embraced online poker in a regulated manner. The Texas Penal Code (Chapter 47) classifies poker as illegal gambling when played for money or prizes, categorizing it under games of chance rather than skill. This legal stance has kept traditional online poker platforms like PokerStars and WSOP out of Texas.

However, the landscape isn’t entirely bleak. Sweepstakes poker has carved out a legal niche, allowing Texans to enjoy online poker without directly wagering real money. This workaround leverages a different legal framework, enabling players to win cash prizes through virtual currencies and sweepstakes entries.

No Regulated Online Poker Rooms

Currently, Texas does not host any state-licensed online poker rooms offering real money games. Players seeking a regulated environment must look beyond state lines, often turning to offshore platforms that operate outside the purview of Texas law. However, these sites lack the protections and oversight that regulated platforms provide, making them a risky choice for many.

Sweepstakes Poker in Texas

Sweepstakes poker is legal in Texas, offering residents a lawful means to enjoy online poker games. Players can participate in these platforms without violating state laws, thanks to the unique sweepstakes model they utilize.

Stake.us

Texans can enjoy Stake.us, a platform known for its engaging poker games and user-friendly interface. Using virtual coins, players can participate in various games and tournaments, with opportunities to win Stake Cash redeemable for real prizes.

Clubs Poker

Clubs Poker accepts players from Texas, focusing on community and competitive play. Offering various poker games and tournaments, it suits both beginners and seasoned players. Operating under the sweepstakes model, Clubs Poker provides a friendly and legal environment to enjoy poker and win prizes.

GlobalPoker

Global Poker is accessible to Texas residents, providing a legal avenue to play poker online. With a wide range of tournaments and cash games, it caters to players of all levels. The dual-currency system allows for both fun play and the chance to win real cash prizes.

clubWPT

Available in Texas, clubWPT brings the World Poker Tour experience online. Through a subscription-based model, members gain access to exclusive tournaments with cash prizes and opportunities to win seats at live WPT events.

The Scoop on Regulations and History

Gambling in Texas has operated on a fringed basis, with private membership clubs serving as the primary venues for live poker. These clubs navigate the legal grey areas by avoiding direct economic benefits from games, instead relying on membership and entrance fees.

For many years, live poker operated in an underground scene. People who “knew someone” could find an underground cash poker game in someone’s basement, home, or empty office space. It was an unsustainable model but one that worked in the absence of anything else. Then, people got creative. They thought about operating a private membership club – as one might recognize an old-fashioned country club or exclusive golf club – but with poker. They could charge a membership fee to anyone who wanted to enter, and that fee would allow them to participate in poker on an hourly basis. Inside the club, they could offer poker games and tournaments, if players abided by three requirements of the Texas Penal Code (Chapter 47):

  1. People “engaged in gambling in a private place.”
  2. They did not receive “any economic benefit other than personal winnings.”
  3. “Except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for all participants.”

Membership clubs met the criteria. The only issue would be if the “house” (club) took rake from the pots, which would be an “economic benefit other than personal winnings.” However, the membership and entry fees eliminated the need for rake.

First Poker Club in Texas

Many in the poker industry point to the Texas Card House as the first establishment to operate under the membership model. Sam Von Kennel opened the first one in Austin, Texas. They opened their doors as a “private poker social club” in 2014. Von Kennel knew the laws, as he had previously worked in politics. He opened the club with many televisions for watching sports, a lounge area, food, and card games like bridge, gin, hearts, spades, and…poker. They eventually acquired an alcohol license as well.

Dozens of Texas Card Clubs

In 2013, there were more than 50 clubs operating around Texas. There are multiple private card clubs in larger cities like Austin, Dallas, Houston, and San Antonio. All of them offer cash games, and many offer tournaments.

The absolute largest of them all is The Lodge Card Club in Round Rock, Texas, in the greater Austin area. In January 2022, three well-known poker players announced that they collectively bought a controlling stake in the Lodge Poker Club. Existing ownership stayed, but Doug Polk, Andrew Neeme, and Brad Owen took control and made it their own. There were 60 poker tables at the time, and they wanted to make it bigger and better.

The Lodge now boasts 82 tables, regular livestreams, a wide range of cash games from low stakes to high stakes. Players now travel there from around the United States (and sometimes beyond) for big tournaments and special events.

Grey Areas

With all of these clubs in operation, one might think that the clubs have averted any legal issues and found their way to unstoppable live poker in Texas. One would be wrong. The clubs each operate with local licenses and permits. But that doesn’t stop some members of local government from ordering law enforcement to raid those facilities now and then, sometimes shutting them down altogether.

Take the example of Texas Card House Dallas. TCH owner and CEO Ryan Crow worked diligently with members of the local city council and authorities to obtain a permit to operate in early 2020. The club obtained its permit for a small club in a strip mall. It shut its doors temporarily during the pandemic but reopened with a renewed certificate of occupancy afterward. But suddenly, in January 2022, the city revoked TCH Dallas’ permit without warning. Crow appealed to the local Board of Adjustment to keep the doors open, and then that board voted unanimously to allow the club to keep its permit.

That changed when a Dallas building inspector and several other city officials sued the Board of Adjustment, saying the reinstatement of the permit was illegal and an “abuse of discretion.” Their attorney argued that the club was merely a gambling place, something deemed illegal by state law.

The Civil District Court judge that heard the case in November 2022 revoked the club’s occupancy permit. Judge Eric Moye wrote in his decision that the decision to reinstate that permit was an “illegal decision” by the Board of Adjustment.

The club remains open as the appeals process continues, as TCH is now appealing the case up the legal ladder, hoping to bring it before the Texas Supreme Court.

Another example is the Watauga Social Lounge Poker Club, located between Dallas and Fort Worth, Texas. In October 2022, the club was hosting a big weekend tournament when the local police force raided the club with guns drawn, ordered everyone in the club to put their hands behind their heads, and showed a warrant that authorized the “search of a gambling establishment.”

The Tarrant County judge had approved the seizure of all cash, chips, financial books, tickets, receipts, gift certificates, and anything else of value. The authorities also took tables, chairs, and other equipment, all loaded into a large truck that the police brought for that purpose. In all, they took nearly $200K worth of equipment and more than $200K in cash. They also issued fines to 49 players and arrested numerous members of the club’s management team.

Nearly one year later, the Watauga Social Poker Club has yet to be able to reopen.

Legal or Judicial Decisions

As mentioned, the Texas Card House owners are taking their case as far up the court ladder as possible. They are seeking a ruling from the Texas Supreme Court regarding the legality of their poker room in Dallas, but the decision will impact all card rooms across the state of Texas.

Should the Texas Supreme Court receive and accept the case, it will provide the opportunity to decide the issue once and for all. If the court rules that the club’s permits are legal as granted by local city councils, it will allow every city across the state to make its own decision. However, a ruling against TCH could force every club in the state to shut down.

The other remedy is a clarification of the gambling laws by way of a new law or amendment.

Texas State Representative Gene Wu of Houston decided to try it. He filed a proposal – HB.732 – in the Texas House of Representatives to change the definition of “gambling place” in the current law to “dwelling.” That would make gambling houses in private dwellings or residences illegal, but membership card clubs would fall under the “private place” distinction, which would then not be deemed illegal by law.

The difference of one word in the law could change the future for nearly 75 card clubs in Texas.

Representative Wu intends to file separate legislation at some point to officially legalize poker rooms in Texas, but he knows that will be more of an uphill battle. “Poker rooms should be regulated in the larger scheme of state gaming,” he wrote on Twitter, “and not left in this weird grey area where you may or may not get arrested, depending on the county.”

That is why Lodge owner Doug Polk launched a new lobbying group in early 2023 called Texans for Texas Hold’em (TFTH). The group worked with State Representative Ryan Guillen to devise HB.2345, which would officially legalize membership poker clubs. In the State Senate, Senator Jose Menendez introduced SB.1681 as a companion bill. While the House bill passed, it stalled on the Senate side.

TFTH is very likely to try again with new legislation in 2025.

Tax on Winnings in Texas

Texas imposes a state tax of 5.5% on gambling winnings. This tax applies to prizes won through sweepstakes poker platforms. Players must report their earnings, and platforms are required to withhold the applicable tax before disbursing prizes.

Help If You Need It

If you or someone you know is struggling with gambling issues, Texas offers resources to help:

  • National Problem Gambling Helpline: 1-800-GAMBLER, official site
  • Texas Gambling Addiction Hotline: 844-779-2637
  • The University of Texas at Austin’s Counseling and Mental Health Center (CMHC): 512-471-3515

Live Poker in Texas

While online poker is facing some regulatory roadblocks, Texas isn’t missing out on the excitement. The state is home to a vibrant live poker community, thanks to its numerous private card clubs. These clubs keep the action going by offering a variety of poker games without the direct exchange of money. Instead of taking a rake, they stick to state laws by charging membership and hourly fees. Pretty clever, right?

The Lodge Poker Club

Have you heard about The Lodge Poker Club in Round Rock? It’s one of Texas’s top live poker destinations, boasting a whopping 82 tables and an atmosphere that’s always electric. Owned by poker legends Doug Polk, Andrew Neeme, and Brad Owen, The Lodge attracts players from all over the country. Whether you’re into cash games or tournaments, there’s always something happening here. I remember attending a weekend tournament there—it was intense and exhilarating! Sometimes, though, the sheer size can be a bit overwhelming, but that’s all part of the excitement.

Elite Social Club

Next up is Houston’s Elite Social Club. With 63 tables, this club offers a spacious and welcoming environment perfect for both newbies and seasoned players. They host regular tournaments and switch up the poker formats to keep things interesting. It’s the ideal spot to sharpen your skills or just have a good time with friends. One evening, I joined a friendly cash game there, and the camaraderie was fantastic. Occasionally, the lighting can be a bit harsh during those late-night sessions, but it doesn’t take away from the overall great experience.

Rounders Card Club

Let’s not forget about Rounders Card Club in San Antonio. This gem has 30 tables, providing a diverse range of poker games and tournament options. It’s a fantastic place to try out different strategies and meet a variety of players. The vibe here is laid-back yet competitive, making it a favorite among local poker enthusiasts. Sometimes, the noise level ramps up, but that just adds to the lively atmosphere.

Famous Players from Texas

Texas has produced some of the most legendary names in poker, each leaving an indelible mark on the game. Let’s spotlight a few of these stellar players who hail from the Lone Star State.

Doyle Brunson
Doyle Brunson
Jonathan Tamayo
Jonathan Tamayo

Doyle Brunson

No discussion of Texas poker is complete without mentioning Doyle Brunson, the “Godfather of Poker.” Although Brunson passed away in 2023, his legacy continues to influence the game profoundly. With 10 WSOP bracelets (including 2 ME in 1976 and 1977) and a lifetime of tournament earnings surpassing $6 million, Brunson’s contributions through his books and tournament successes have shaped generations of poker players. Doyle died on May 14, 2023 in Las Vegas.

Jonathan Tamayo

Jonathan Tamayo, hailing from Humble, Texas, is a rising star in the poker scene with total live earnings exceeding $12 million. A Cornell University graduate, Tamayo clinched the 2024 WSOP Main Event, securing $10 millions.

Benjamin Tollerene

Residing in Fort Worth, Benjamin Tollerene stands as Texas’ all-time leading money earner with over $16 million in live poker tournament cashes. Known online as “Ben86” or “Bttech86,” Tollerene excels in Pot-Limit Omaha cash games and boasts impressive tournament results, including a second-place finish in the 2024 WSOP Super High Roller for over $3.5 millions.

FAQ

Is online poker legal in Texas?

No, Texas does not regulate online poker for real money. However, sweepstakes poker platforms like Stake.us, GlobalPoker, Clubs Poker, and clubWPT offer legal alternatives for Texans to enjoy online poker.

When will online poker be legal in Texas?

Legislation to legalize online poker in Texas has been proposed intermittently, but no bills have passed to date. It remains uncertain if and when online poker will be regulated in the state.

What is the best Texas online poker site?

Sweepstakes sites such as Clubs Poker and GlobalPoker are highly recommended for Texans seeking legal online poker platforms with real money prize opportunities.

Can you win real money playing online poker in Texas?

Yes, through sweepstakes poker platforms, players can win real money prizes by earning and redeeming sweepstakes entries, which comply with Texas laws.

Is PokerStars available in Texas?

No, PokerStars does not operate legally in Texas. Texans must use alternative sweepstakes poker sites to participate in online poker games.

What is the difference between sweepstakes poker and real money online poker?

Sweepstakes poker uses virtual currencies and sweepstakes entries to offer real money prizes, circumventing direct cash wagering and aligning with Texas’s legal framework.

What is the legal gambling age in Texas?

The legal gambling age in Texas is 18. However, some charitable gambling activities may have different age requirements.

How are gambling winnings taxed in Texas?

Texas imposes a state tax of 5.5% on gambling winnings. Players must report their earnings, and platforms are responsible for withholding the applicable tax.

What resources are available for problem gambling in Texas?

Resources include the National Problem Gambling Helpline (1-800-522-4700), the Texas Council on Problem Gambling, and local Gambler’s Anonymous groups.

Can I play online poker on offshore sites from Texas?

While Texans can access offshore poker sites, it is not recommended due to the lack of legal protections and potential risks associated with unregulated platforms.