Online Poker and The Law in Texas. As is often is the case, existing law does not really contemplate internet poker, and the thrust of the law here is directed generally at people profiting from running gambling operations in the state of Texas, which isn’t really the case with playing online. At this time, online gambling is illegal in Texas. The Problem of Online Gambling There are several reasons that online gambling is illegal in Texas. Primarily, it is illegal because it violates Texas’ prohibitions on gambling.

With 27.5 million residents, Texas is America’s second most-populous state.
This means that the Lone Star State could make a fortune through gambling taxes.

But Texas doesn’t take advantage of this opportunity because they have
limited casino gaming and live poker.

Not surprisingly, Texas doesn’t have legal internet gambling either.

But offshore gaming sites still target their large market.

Online Gambling and Texas Law

Texas doesn’t address internet gambling in their criminal code. Furthermore,
they don’t mention the words “computer,” “internet,” or “online.”

But this doesn’t mean that internet gambling is legal here. In fact, the
state’s broad laws make it illegal for offshore gaming sites to operate within
their borders.

We’ll cover this and other important aspects of the state’s online gaming
stance below.

Is Online Gambling Legal in Texas?

Let’s begin with code 47.03 of the criminal code, which states that a person
“commits an offense if he intentionally or knowingly does any of the following
acts:”

• Earns profits from a “gambling place.”
• Bookmaking.
• Earns profits from being “a custodian of anything of value bet or offered to be bet.”
• “Sells chances” on any game, contest, or political nomination.
• Sets up and runs a lottery.

The first-time charge for any of these offenses is a Class A misdemeanor,
which is a light punishment for illegal gambling operators.

Nevertheless, it’s clear that Texas doesn’t allow any form of gaming beyond
what they’ve specifically approved. Internet gambling doesn’t fall under this
umbrella, therefore it’s technically illegal in the state.

Why do Gambling Sites Operate in Texas?

As just discussed, offshore gaming sites are not considered legal
in the Lone Star State, but they continue to
operate here for three main reasons:

1. Texas doesn’t have a regulated iGaming market.
2. Texas hasn’t taken legal action against offshore sites.
3. The Texas Constitution doesn’t specifically make internet gambling illegal.

These three conditions are present in most states, which is why most of them
are served by offshore operators.

Even Louisiana, South Dakota, and Washington – which explicitly outlaw online
gambling – have problems with offshore sites.

This means that the threat of legal action is the biggest condition to
whether internet gambling sites serve a state.

Texas has never pursued legal action against offshore sites, and the status
quo is likely to continue for a while.

Will I be Arrested for Gambling Online in Texas?

It’s possible, but there’s almost no chance that you’ll be arrested.

Code 47.02 states a gambling offense occurs if somebody:

1. “… 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.”
2. “… 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.”
3. “… plays and bets for
   money or other thing of value at any game played with cards, dice, balls, or any
   other gambling device.”

Anybody who commits one of these offenses is subject to a Class C
misdemeanor. Exceptions are made for those who engage in social gambling and /
or are involved in a skill-based contest where everybody has the same chance.

Perhaps an argument can be made that online poker falls into this category
because it’s skill-based. But by and large, internet gambling is illegal in the
Lone Star State.

Nevertheless, they haven’t arrested anybody for playing online casino games
or placing sports bets. This gives us confidence that you won’t be arrested for
the activity.

Furthermore, the U.S. Department of Justice issued a 2011 opinion that the
Wire Act – a
federal ban on certain types of gambling – only applies to sports betting.

Are Offshore Gaming Sites Safe?

This depends upon the specific site you’re dealing with. But for the most
part, offshore gambling sites are safe.

The risk comes when considering that offshore sites are based outside of the
U.S. This means that they’re neither licensed in America nor directly subject to
U.S. laws.

The matter can be scarier given that a small percentage of nefarious
operators have closed without repaying player deposits..

But here’s the thing: most offshore operators realize the value in repeat
business.

If they don’t have good customer service or process cashouts in a timely
manner, they’ll receive less repeat players. Long story short, you can have
confidence that most internet gambling sites will serve you well.

How Do I Pick the Best Gaming Sites?

To choose safe gaming sites, you should read reviews of any prospective site.
The more reviews you read, the better you’ll be able to make an informed
deposit.

Another thing you should do is visit the site directly and look for certain
aspects. Reviews are great, but it’s even more effective if you do research
yourself.

Here are some key points that you want to look for:

• Longevity and Reputation –

  The longer a site is in business, the more likely it is that they properly serve
  players. And when you combine this with a good reputation (via reviews), you
  have a winning site.

• Game Variety –

  Everybody
  loves a nice variety of games. This is why you want to visit a site and see if
  they have the games / sports lines you want.

• Banking Options –

  If real
  money iGaming is your goal, then you need to make sure that there’s a deposit
  option you can use.

• Customer Support –

  This is
  a key point covered in reviews. You can also visit directly and live-chat with
  customer service to see how friendly and knowledgeable they are.

• Bonuses & Promotions –

  It’s
  always exciting to earn cash on the side of your play. Check out the welcome
  bonus and promotions at any site you’re interested in.

• Bonus Terms & Conditions –

  Click the terms and conditions underneath the welcome bonus to see what wagering
  requirements must be met. The industry standard for online casino bonuses is 40x
  rollover (or 20x bonus + deposit).

Also On This Page

More Gambling Laws in Texas

• Casino Games (Class II Legal)
• Sports Betting (Illegal)
• Poker (Legal)
• Racing Betting (Legal)
• Lottery (Legal)
• Bingo (Legal)
• Charitable Gambling (Legal)
• Social Gambling (Legal)

Casinos: Legal

Texas only has two casinos spread throughout its vast 269,596 square miles.
This includes the Kickapoo Lucky Eagle Casino and Aransas Queen cruise ship.

The Kickapoo Lucky Eagle is located along the Mexican border and offers Class
II gaming. Class II machines are similar to regular slot machines, except that
results are determined by historic horse races or electronic bingo cards
(instead of random number generators).

The Aransas Queen is a huge yacht that began sailing out of Corpus Christi in
2015. They’re only allowed to offer gaming when in international waters.

It remains to be seen how successful the Aransas Queen will be. Texas has had
multiple gambling cruises that have failed over the years.

This includes the Le Mistral, the original gambling cruise ship that set sail
from Galveston in 1988; it went bankrupt in 1994.

Several other Texas gambling cruises have either gone bankrupt or moved to
different states seeking more profitability.

Charitable Gambling: Legal

Under the Charitable Raffle Enabling Act, Texas allows licensed charities to
offer bingo and raffles. Unfortunately, this means that casino nights and Texas
hold’em tournaments are out of the question.

Lottery: Legal

Legalized in 1992, the Texas Lottery sells a wide range of instant and
drawing games. Available games include: All or Nothing, Cash Five, Daily 4, Pick
3, Mega Millions, Powerball, Texas Triple Chance, and Texas Two Step.

Poker: Legal

The Kickapoo Lucky Eagle Casino has a small poker room. Other than this, the
only ways to play poker in Texas include offshore gaming sites and social games.

Racing: Legal

Texas is one of the few states that offers active horse and dog racing
tracks. They currently have four tracks operating in the state.

Social Gambling: Legal

Code 47.02 of the Texas criminal code includes exemptions for social gaming.
These include the following:

1 – “The actor engaged in gambling in a private place.”

2 – “No person received 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.”

As long as the host isn’t profiting from your social gambling function
through a house edge, food, or drinks, the game should be fine. Also, make sure
that no illegal firearms or drugs are on the premises.

Gambling Venues in Texas

As discussed before, Texas only has two casinos – the Aransas Queen cruise and
Kickapoo Lucky Eagle.

Lucky Eagle is by far the largest of these casinos, sporting over 3,300 Class
II gaming machines. But it’s also in the remote Lucky Pass area on the Mexican
border, making it difficult for many Texans to visit.

Aransas Queen has over 200 gaming machines and some table games. This mega
yacht must reach international waters before gambling commences.

In addition to two casinos, Texas also offers Class II pull tab machines at
parlors in the Dallas, Houston, and San Antonio areas.

These are electronic pull tab machines that look and play like slot machines.
One stipulation to these games is that individual payouts can’t be any larger
than $5.

Lucky Eagle Casino & Hotel

794 Lucky Eagle Drive

Eagle Pass, TX 78852

History of Gambling in Texas

Dating back to when U.S. settlers arrived in Mexican Texas, the territory was
filled with brothels, saloons, and gambling halls. This continued long after
Texas became a state in 1845.

Professional gamblers like “Doc” Holliday and “Lottie Deno” Thompkins roamed
the plains of Texas in the mid and late 1800s.

The Lone Star State finally began cracking down on vices in the early 1900s.
Most gambling halls were banned and closed by 1917.

Texas didn’t officially legalize any gambling activities until 1933, when
they approved pari-mutuel betting. Just four years later, the state voted to
shut down pari-mutuel wagering.

The see sawing continued in 1987, when Texas legalized pari-mutuel gambling
for good.

The state also has a strange history with tribal casinos. With help from the
federal government, they shut down the Tigua Tribe’s Speaking Rock casino in
2002.

But the Kickapoo Casino has been in operation ever since 1996 because they
offer Class II gaming. Governor George W. Bush questioned the validity of this
casino, but the Kickapoo won a pre-emptive lawsuit against the state.

Is Online Gambling Legal In Texas

Texas also legalized casino cruise ships in 1988, but ships were originally
forced to visit a foreign port of call (Mexican villages) before docking in
Texas. This only lasted a year before Galveston officials got the port of call
portion repealed.

Despite their limited gambling, Texas has had activity on the iGaming
legislative front.

U.S. Rep. Joe Barton has introduced federal online poker legislation twice.
Texas also had two other iGaming bills introduced in 2013, but none of these
efforts came to fruition.

Texas Gambling FAQs

With no specific laws addressing internet gambling and a host of available
offshore sites, Texas iGaming is confusing to many gamblers.

Here are some FAQs we’ve received on the Lone Star State that can help clear
up the matter.

Are Daily Fantasy Sports Legal in Texas?

According to Texas Attorney General Ken Paxton, daily fantasy sports (DFS)
aren’t legal. Here’s an excerpt from his
January
2016 letter:

“Because the outcomes of games in daily fantasy sports leagues depends
partially on chance, an individual’s payment of a fee to participate in such
activities is a bet. Accordingly, a court would likely determine that
participation in daily fantasy sports is illegal gambling.”

DraftKings, the industry’s largest site, has refused to take this ruling
lying down. They launched a lawsuit against Paxton and continue to operate in
the Lone Star State; FanDuel, however, exited Texas.

State Rep. Richard Raymond introduced legislation that would’ve classified
DFS as a skill based activity, but House Bill 1457 failed to gain any serious
attention.

When Will Texas Legalize Online Gambling?

It could be a decade or more.

Texas isn’t receptive of new forms of gambling. The casinos and gaming
parlors they have skirt state laws by offering Class II machines that operate
through loopholes.

With no commercial casino industry to lobby for internet gambling, it seems
unlikely that the activity will be available any time soon.

Strangely enough, though, Texas has had federal legislative efforts come out
of their state.

U.S. Representative Joe Barton (R-Tex.) proposed the Online Poker Act of
2011, which would’ve legalized online poker on a federal level. But HR-2366
didn’t get any significant attention in Congress.

In 2013, Barton introduced another legislative effort called the Poker
Freedom Act. This also sought to regulate internet poker on a federal level,
while leaving online casino games up to individual states.

The same year saw former State Senator Leticia van de Putte introduce State
Bill No. 1103. This legislation would’ve allowed states to opt in to federally
legalized internet poker.

None of Texas’ iGaming bills have gotten very far. But they do show that
state politicians at least consider the matter.

Looking at Texas today, though, we don’t see them regulating online gaming
for another 10 years.

Why Doesn’t Texas Bust Internet Gambling Sites?

Texas will bust an online gambling operation – they just haven’t shown the
willingness to cross seas to do it.

In 2013, state police raided a
$5 billion online sports betting operation in the North Texas area.

The eighteen-member ring accepted both online and in-person bets, making $200
million in profits from 2007 to 2011.

The main reason why this group was busted is because they operated on US
soil.

It’s an entirely different ballgame to pursue offshore gaming sites operating
in countries like Antigua and Barbuda, Costa Rica, and Panama. The only state
that has successfully done this is New York, which was backed by the U.S.
Department of Justice.

Because of their size, Texas has the resources to pursue offshore gambling
sites. But like most other American states, they view other things as more
important than chasing gambling sites.

Can I Gamble on my Smartphone or Tablet in Texas?

Gambling on your smartphone isn’t technically legal. But we don’t see you
ever being arrested for it.

Code 47.01 (4) states the following about illegal gambling devices:

“…means any electronic, electromechanical, or mechanical contrivance not
excluded under Paragraph (B) 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.”

This could include a smartphone or tablet if Texas felt like pursing mobile
gamblers. But they’ve never arrested anybody for internet gambling, and we don’t
see this changing anytime soon.

Additional Resources

Here’s information on Texas gaming agencies and where you can find the
state’s gambling laws.

This website features many laws related to Texas’ gambling industry.

This page covers multiple gambling-related FAQs with Texas State Attorney
General Ken Paxton.

This page offers a comprehensive look at laws for Texas bingo, general
gambling, lotteries, and racing.

The Texas Racing Commission website features information on the state’s dog
and horse racing industries.

The Future

Texas features most forms of gambling, although they’re very limited in the
casino, pari-mutuel, and poker categories.

The Lone Star State has been conservative on the gambling front ever since
the lawless 1800s. This means that they’re slow to adapt to new forms of gaming.

The same holds true for internet gambling because Texas hasn’t legalized
casino games, poker, or daily fantasy sports.

Surprisingly, Texas has had politicians try to legalize online poker on a
federal level. But these efforts have never earned a serious look.

Odds are that iGaming will never be legalized on a federal level until the
state has commercial casinos. This has been an absolute condition thus far in
regulated states like Delaware, Nevada, and New Jersey.

Given that Texas has no immediate plans for casinos, this alone could take 5
to 10 years to happen. Then, we’re looking at a few more years until the Lone
Star State regulates internet gambling.

Until that happens, you’re free to enjoy offshore gaming sites, because Texas
ignores both operators and players.

Texas has been a hotbed for poker for many years, and after all, the world’s most popular form of poker is called Texas Hold’em. The game is said to have originated in the town of Robstown, Texas, in the early 1900’s, and eventually spread throughout the state (1). Although this story doesn’t really have much historical documentation to back it up, what is widely acknowledged is that Hold’em was first widely played by Texas road grinders in the early ’60s and perhaps late ’50s.

It wasn’t until the game was brought to Las Vegas in 1967 that the game become known as Texas Hold’em, as prior to that it was just called Hold’em. Although played primarily in Texas, it had also spread to surrounding states.

The stories of the Texas road gamblers, such as Doyle Brunson, Amarillo Slim and Johnny Moss, are the stuff of legend as they traveled from town to town making their living playing poker. Many of the best poker players and the early winners of the WSOP were from Texas.

There are also plenty of stories of these games being broken up by law enforcement. This would not be the case today under existing laws, at least not in the private games anyway, but in spite of Texas’ fame as the birthplace of one of poker’s great games and many of its famous players, it has always been a pretty conservative state as far as gambling goes.

Poker Laws in Texas Today

It is generally believed that all forms of gambling in Texas other than those specifically authorized, such as participating in the state lottery or betting at an approved racetrack, are contrary to state law.

Things aren’t always as clear as they may appear as far as the law is concerned though. It is certainly true that the Texas Penal Code makes gambling illegal in general. Betting for money on card games is specifically mentioned as constituting an offense (3). Anyone found guilty of gambling has committed a Class C misdemeanor, which incurs a fine of up to $500. There’s no possibility of jail time for individual bettors or players. For some of the more severe infractions related to running a gambling enterprise, there are higher fines and jail sentences prescribed.

The interesting thing is that it is a defense to a charge of gambling if the following conditions, listed in the Texas Penal Code, Title 10, Section 47.02(b), are satisfied:

“(b) It is a defense to prosecution under this section that:
(1) the actor engaged in gambling 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.”

We see that (1) permits betting that occurs in a private place, meaning that things like home poker games would be excluded from running afoul of this law.

To be exempt from this law, there is also the requirement listed in (2) above that no persons receive any economic benefit from the gambling other than their personal winnings. It could be argued that the intent of this is to allow people to gamble in a friendly way with their friends while still preventing persons under the jurisdiction of Texas law from benefiting by running a gambling business.

Finally, a game must give each participant the same chances of winning and losing apart from “the advantage of skill or luck” as explained in (3) above. This is likely an attempt to make cheating illegal even if the other two conditions for defending against a gambling charge are met.

Live Poker in Texas

There is only one venue offering indisputably legal live poker in Texas, and it also happens to be the state’s only casino. In spite of Indian tribes being pretty active in operating casinos in other states, they have met with more difficulty in Texas.

At one time there were three different Indian casinos operating in the state, but state authorities were successful in shutting two of them down, and only one remains today, the Kickapoo Lucky Eagle Casino and Hotel in Eagle Pass (2). Its poker room features $3/$6 limit and $1/$2 no limit Texas Hold’em every day with higher stakes spread on weekends and upon request. There are also low-buyin tournaments a few times a week.

Membership Poker Rooms

After examining the three stipulations laid out for gambling to not be illegal, a few Texas entrepreneurs had a clever idea. Beginning in 2015, they started to open up membership-based card rooms that they claim are in full compliance with the law.

These poker rooms don’t charge any rake. Instead, they charge daily, weekly, monthly or yearly membership fees from anyone who wants to play. This membership model serves a dual purpose. Because these businesses are not open to the public at large but rather restricted to members, management can claim that the gambling is taking place in private rather than public. Also, because the membership fees aren’t derived specifically from the money on the gaming tables, there’s an argument that these facilities aren’t deriving any economic benefit from gambling. (4)

Some of these poker rooms supplement their revenues by selling food, requiring players to pay a rental fee on their seats at the tables and through various other mechanisms. Many of them offer additional amenities, like lounges, televisions and pool tables, to support their argument that they are social clubs with gambling as just an additional attraction.

Of course, there are those who feel differently. They contend that gambling is the main appeal of these card rooms, and it is the reason why anyone pays for membership in the first place. Thus, the owners are clearly gaining an economic benefit from real money gaming.

Although the attorney general’s office has been asked to render an opinion on this matter, there has been no answer as yet. Confusing matters further are the questions of whether food and beverages can be sold, whether daily membership available to anyone who walks in the door really counts as “private” gambling, whether hourly seat rental charges are OK and other similar concerns. Each of these rooms generates its income in slightly different ways, so there are plenty of elements that can be attacked as being potentially illegal.

The ability of these card clubs to operate depends heavily on how local law enforcement feels about them because, even if it would be hard to achieve a conviction in court, raids and shutdowns by the police can really interfere with the continuing operations of a location. This has actually occurred in Dallas where local officials closed down two of these card clubs in 2017.

Is Online Gambling Illegal In Texas

Today, Texan membership poker clubs dot the state in such cities as San Antonio and Austin. Houston has even begun licensing them at the municipal level, spurring the creation of such businesses as the Post Oak Poker Club and the Prime Social Poker Club within the city. We still await a final resolution as to the legal status of membership card rooms, but for now, live Texas poker appears to be booming.

Online Poker and The Law in Texas

As is often is the case, existing law does not really contemplate internet poker, and the thrust of the law here is directed generally at people profiting from running gambling operations in the state of Texas, which isn’t really the case with playing online.

The view though is that since people aren’t being prosecuted for playing online poker, online poker players in Texas aren’t worried about this at all, nor are offshore poker rooms that serve Americans, since none of them have a problem with allowing Texas residents to play on their site, unlike players in some states.

It’s extremely likely that people enjoying poker games played across the internet have an ipso facto defense from being subject to illegal gambling prosecution under Texas law unless they’re doing something really unusual. The three factors of taking place in private, not profiting other than as a player and not cheating appear to apply fully to online poker in Texas. The only conceivable ways that someone could get into trouble for internet poker in Texas would be if they’re playing in public, attempting to run their own poker site or cheating in some way.

In any event, the state of Texas has taken a hands-off approach here, and it is very likely that if this changes, it will require laws more specific to online poker for this to be prosecuted, which doesn’t look like it will happen any time soon. So online poker players in Texas can continue to be pretty comfortable here.

Recommended Online Poker Rooms For Texans

Is Internet Gambling Legal In Texas

Ignition Poker: This is the newest and most popular player in the online poker industry. They have come in hot in 2016 after acquiring the Bovada Poker software and re-branding into both a poker site and an online casino. The site offers a 100% bonus up to $1,000 should you decide to play for real money.

This site has some of the best cash games in the world, huge MTT guarantees, great SnG selections and of course have amazing promotions to keep players interest piqued. Check out our review for Ignition and find out why it’s one of the fastest-rising rooms in the iGaming field today.

Americas Cardroom: This fairly popular poker room has a Texas connection of sorts. When Doyle Brunson’s online poker room closed down due to pressure from the authorities, their players were all moved to Americas Cardroom.

They continue to welcome Texans and all Americans with open arms, and have up to $1000 in bonus money sitting there for you to welcome you as well. So if you haven’t experienced this poker room before, just click here and you will be on your way to doing just that. Visit our ACR Review today for more info.

References:

(1) Texas Hold’em

Is Online Gambling Legal In Texas

(2) Lucky Eagle Casino

Is Internet Gambling Legal In Texas

(3) Texas Penal Code Section 10, Chapter 47, Gambling

(4) Texas Online Gambling Laws

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