Texas Poker Bill (HB 292) - Brick & Mortar only

[sba9630]

CHAPTER 2004. POKER GAMING [legis.state.tx.us]

(23) "Poker" or "poker game" means a card game in which players place a bet based on the highest or lowest ranking hand of cards held or combination of highest and lowest cards held. The term includes the game known as Texas Hold'em or any variation or combination of Texas Hold'em, but does not include blackjack, hearts, pinochle, rummy, Internet poker, video poker, or Asian card games such as Pai Gow.

(emphasis added)

[repulse]

There is something very disorienting about that paragraph to my logic units. (GL Texas.)

[bobg3]

So Acey Duecy is the new Texas poker?

[sba9630]

Sec. 2004.410. BONUS PROGRAMS. (a) The commission by rule
shall establish promotion bonus programs for bad beat hands and
other bonus programs. The programs may be statewide or limited to
individual premises.

(b) Each licensed operator shall:
(1) collect promotion bonus fees in accordance with
commission rule; and
(2) award a bonus that does not exceed $250 to the
player who wins the bonus.
(c) The amount awarded under Subsection (b)(2) shall be
deducted from the daily promotion bonus fee that would otherwise be remitted to this state.
(d) The commission shall award to the winning player of a
bonus program any amount that exceeds $250.
(e) A distributor may collect from the commission an
administrative fee, not to exceed 20 percent of the promotion bonus fee paid to a winning player.

Sec. 2004.411. COLLECTION FEE. (a) Each licensed operator
shall collect a collection fee on each poker hand played. The
collection fee may not exceed 10 percent of the communal pot in each
hand of poker played, with a maximum of $4 per hand.

(b) The commission shall adopt rules necessary to
administer this section.

Sec. 2004.412. PROMOTION BONUS FEE. (a) A promotion bonus
fee may not exceed $1 per hand.

(b) The promotion bonus fee shall be remitted to this state, after deducting the gross receipts tax, the fee used for bonus programs, and administrative fees not to exceed 20 percent of the promotion bonus fee.

[PokerXanadu]

The bill seems to require Indian tribes to be licensed and regulated by the state to run a poker room. However, Federal law allows Indian tribes to run poker without state licensing or regulation as long as anyone else in the state is authorized to do so. Seems like a conflict and infringement on Indian tribal sovereignty.

[sba9630]

Does this section get around that?

Sec. 2004.103. OPERATOR'S LICENSE: MANDATORY ISSUANCE;
CONTINUED SUITABILITY. (a) The commission shall issue an
operator's license to an applicant that:
...

(B) is a federally recognized Indian tribe that
has a reservation in this state;

[PTLou]

Originally Posted by sba9630

CHAPTER 2004. POKER GAMING [legis.state.tx.us]

(23) "Poker" or "poker game" means a card game in which players place a bet based on the highest or lowest ranking hand of cards held or combination of highest and lowest cards held. The term includes the game known as Texas Hold'em or any variation or combination of Texas Hold'em, but does not include blackjack, hearts, pinochle, rummy, Internet poker, video poker, or Asian card games such as Pai Gow.

(emphasis added)

SBA, what is this from? Rep Menendez's Bill from 3-4 years ago? is there a new bill floating around Austin?

[sba9630]

It's Texas State Representative Eddie Rodriguez's bill, filed today.

The session starts Tuesday, January 8, 2013.

I put the odds of it passing about the same as Governor Aqua Net presiding over a gay marriage in the Capitol Rotunda, right after signing off on Medicaid expansion for Texas.

[PokerXanadu]

Originally Posted by sba9630

Does this section get around that?

Sec. 2004.103. OPERATOR'S LICENSE: MANDATORY ISSUANCE;
CONTINUED SUITABILITY. (a) The commission shall issue an
operator's license to an applicant that:
...

(B) is a federally recognized Indian tribe that
has a reservation in this state;

Nope. There lies the problem. The state cannot circumvent Federal law which establishes the rights and procedures for Indian tribe gambling operations simply by making their own state law about it.

[Thew92]

Originally Posted by PTLou

SBA, what is this from? Rep Menendez's Bill from 3-4 years ago? is there a new bill floating around Austin?

Looks very similar to Rep Menendez's HB 382 of 2011, That didn't go anywhere. But now we have a lot more pissed off poker players here in Texas.

[Thew92]

Originally Posted by PokerXanadu

Nope. There lies the problem. The state cannot circumvent Federal law which establishes the rights and procedures for Indian tribe gambling operations simply by making their own state law about it.

This can be changed. I sure this will be corrected in Committee
.

[Thew92]

Originally Posted by sba9630

but does not include blackjack, hearts, pinochle, rummy, Internet poker, video poker, or Asian card games such as Pai Gow.[/INDENT]
(emphasis added)

It is not a good idea here in Texas to go after B&M Poker and Internet Poker in the same bill. I don't think Texas would go the Internet route until something happens at the Fed level or at least 25 other states start compacting. So leaving internet poker out in the bill gives it a higher chance of passing.

[PokerXanadu]

Some bill cliffs:

Establishes a poker division in the Texas Lottery Commission to license and regulate poker rooms.

Licenses can be granted to licensed bingo operators, licensed pari-mutuels (horse or greyhound racing) and Indian tribes.

Pari-mutuels and tribes can operate 24/7; bingo halls can operate poker during the same hours as they are allowed to operate bingo.

Pari-mutuels pay 16% tax on gross revenues (all game rake and fees, plus all jackpot money collected); bingo halls and tribes pay 18% tax.

The taxes have to paid on each day's revenues by 5pm the following day.

All these taxes, less any amount needed to run the govt division for poker licensing and regulation, goes to the state Texas Department of Housing and Community Affairs, 50% for homeless programs and 50% for the Housing Trust Fund.

2% of a pari-mutuel's poker gross revenues must go to the pari-mutuel wagering purse fund.

Licensees, dealers and service providers pay annual license fees of:
(1) $1,000 for an operator's license;
(2) $100 for a dealer's license;
(3) $250 for a manufacturer's license; or
(4) $250 for a distributor's license.

Dealers must go through a mandatory training program to get licensed.

A deck of cards can be used for a maximum of 50 hands.

Maximum tournament buy-in allowed is $100; maximum tournament fee (rake) allowed is $30.

No restrictions on cash game buy-ins.

Max rake is 10%, up to $4 per hand.

Bonus programs (jackpots for bad beat and other) are determined by the state commission, either room by room or statewide. The rooms collect the drop for the bonuses according to the commission rules. The rooms can payout bonuses up to $250; any higher bonuses are paid directly by the state commission to the player. Distributors can charge the state up to 20% of jackpots paid as an administration fee.

Max jackpot drop is $1 per hand. State tax (16% or 18%) and the distributors' administration fee come out of the player jackpot money.

Minimum poker player age is 21. (Same for all poker room employees, including dealers.)

Must be a least two cameras at every table. Recordings are kept at least 30 days. Players can dispute the award of any pot by written complaint within one day to the state commission. Room has to provide the recordings to the commission for resolution of the complaint.

Free drinks not allowed.

Fraud (using or possessing cheating devices; pretending to be licensed; altering the outcome of a hand or game; changing a bet; manipulating gaming equipment; using fake chips; etc.) is a felony of the third degree. Cheating and operating without a license are state jail felonies. Under-age play is a Class C misdemeanor (for player or person allowing it).

[PokerXanadu]

Originally Posted by Thew92

This can be changed. I sure this will be corrected in Committee
.

Maybe. They will have to understand that under federal law every federally-recognized tribe in Texas will gain the right to run public poker games on their tribal lands without any state licensing, regulation or taxation once this bill passes and licenses are granted to pari-mutuels and/or bingo halls. It seems like the bill author is aware of that and is trying to circumvent it. No Indian tribe nor the federal government will let that stand.

[tamiller866]

Originally Posted by PokerXanadu

Nope. There lies the problem. The state cannot circumvent Federal law which establishes the rights and procedures for Indian tribe gambling operations simply by making their own state law about it.

Texas is somewhat of an exception to the IGRA rule, there are three Federally recognized Tribes, but Texas won a controversial 5th Circuit ruling that allows them to only treat one of them as having regulatory sovereignty under IGRA - essentially because of the date and circumstances the other two were recognized.

They also won a ruling against the third Tribe barring them from offering Class III gaming, but that Tribe actually does offer self-regulated Class II gaming, so I'd imagine Texas would just continue to ignore them, and allow the other two to apply for licensing.