Markus Krypeos', a research attorney for the TDCAA, article in the Texas Prosecutor's November/December edition lays out a case against FREE public poker games in Texas.
It’s no surprise that the popularity of poker on TV has led to a growth of home games and local tournaments. Bars and restaurants are even advertising weekly poker tournaments. Unfortunately, these public tournaments are illegal....[snip]...
Two blocks from the TDCAA office, a sign hangs from a restaurant balcony: “Free Texas Hold ’Em Tournament Every Saturday.” This has become an alltoo- common attempt to circumvent the law. These poker clubs, which use local restaurants and bars to hold their tournaments,
eliminate the entry fee and allow the public to play for free. They
then award the winners points. Over several months, players can use their points to redeem valuable rewards and prizes. Some establishments even award vacations.So why are these poker clubs illegal? ....
His argument is that although no money is exchanged at the table nor is an entry fee paid, "players usually play for some economic benefit; even though this benefit may be deferred to a later time, and the benefit is won or lost during the game."
The economic benefit that he is talking about are the prizes, such as vacations or entries into poker satellites, awarded for winning tournaments or cashing in points earned for winning tournaments. The argument then is that since there is an economic gain, even if it is free to enter, you are risking something of monetary value and therefore you are making a "bet" in the legal sense of the word every time a hand is played.
The reason why this makes free public poker illegal, or so Krypeos claims, is that under Texas law, for the game to be legal it must take place in the private sphere. Public poker rooms are, by definition, not private.
As of now there is no ruling as to the legality of free public poker, but Krypeos is seeking an opinion from the Texas Attorney General on tournaments which use a points-based or similar system to give out prizes.
How effective he will be in his tirade against free games, I honeslty don't know. Texas penal code is very specific about what it means to place a bet ("Bet" means an agreement to win or lose something of value solely or partially by chance.) and I don't think Krypeos use of the term fits that definition. I think it would be hard to lose something that you did not have to begin with.
However, given the statewide crack down on poker recently, it wouldn't be completely out of the blue to see an opinion supporting Krypeos' argument. Until then though, I am going to enjoy my nights at the bar with the guys having a good time and earning "future benefits".