Texas poker aficionado Michael Eakman opened Mint Poker, the city’s first restricted membership-based poker club, in southeast Houston three months ago. Eakman and other entrepreneurs believe their clubs are within the letter of Texas law, because unlike traditional gambling houses, the private clubs charge membership fees instead of taking a share of any gambled money. Under Texas law, no third party may benefit from a bet and all bettors must have an equal chance to win.
So far, Eakman and other entrepreneurs in Austin and north Dallas have not been scrutinized by the Texas Attorney General Ken Paxton’s office, the state legislature or regulatory agencies. They have formed an association to represent their interest and already are talking about expanding. “In our conversations with the city attorney here in our jurisdiction, we made everyone aware of what we were doing before we even signed the lease. I certainly don’t want to challenge anyone to bring a court case, but I think at the end of the day we’re handling this by being proactive instead of reactive. There are no regulations and guidelines other than the narrow scope of a very vague law,” Eakman said.
Currently, legal gambling in Texas consists of bingo, horse and dog racing, Native American casinos and the Texas Lottery.
Mint Poker offers 20 poker tables. Eakman said before the club opened,
Houstonians who wanted to play poker had to drive across the Texas border or play at illegal underground poker clubs, known for raking large amounts of money from every pot of every poker hand. The clubs also are known for cheating, crime and drugs.
Besides Mint Poker in Houston, Texas Card House has two locations in Austin and Poker Rooms of Texas is located in north Dallas. Collectively they formed the Texas Association of Social Card Clubs and hired lobbyist Tim VonKennel to represent them at the Texas legislature, Eakman said. VonKennel, the father of Texas Card House owner Sam VonKennel, helped organize the association to increase legislators’ awareness of private poker clubs. “The legislature hasn’t really seen it yet because it hasn’t really existed. As they pop up, I want to make sure the legislature is aware of them. What I would really like to do is get these guys to become licensed with the Texas Department of Licensing and Regulation, and that way they’re absolutely certain they’re on the right side of the law.”
State Senator Jose Menendez met Eakman at a poker tournament, then worked with him to craft a business plan that would follow Texas gambling laws. “I think it’s a little hypocritical that we can have a state lottery or horseracing in Texas but we can’t let people play poker. Fortunately, it appears this is an issue where legislators don’t want to touch it. They understand that people want to have the freedom to do this, so they’re willing to not get into it. For now at least they’re letting these membership-based card rooms be safe places for people to be able to practice their hobbies.”
Brandon Rottinghaus, a political science professor at the University of Houston said the membership poker club business model “probably violates the spirit, if not the letter of the law. So, in instances like that, there will definitely be a pushback where the attorney general and local law enforcement might take offense to the idea that there might be this illicit expansion of gambling, even if it’s not technically speaking illegal gambling.”
He added, “Trying to get around the law on this issue is never profitable. I think that’s the real danger that the people running these clubs have. You may technically be in the right, but this issue is so fraught with politics and morality that you’re unlikely to succeed.”
However, Eakman noted, “All of these people in here vote. At the end of the day, they’re going to be playing poker somewhere. We think the right thing to do is to allow people to play.”
