Put another way;

This is the same as a rake. The house is taking taking a share of each pot that should go to the winning player.

Think of it as a “ fixed fee rake” as opposed to the usual percentage one. But it’s still a rake!

In fact, by having a "no flop, no drop" policy, the house now has an express interest in the game itself. What happens in the game creates an economic benefit to the house depending on the outcome.

There are several ways this breaks the defense of no person recieved any economic benefit other than personal winnings.

I was really excited for this new room as think competition can only help improve the overall poker scene. I am a little curious on strategy of being basically $5 per hour more expensive when doing the same hourly rate plus a $2 drop on each hand. When playing 1/2, it is a big difference to win 1 BB less every hand that you win as well as potentially creates more risk for players if someone decides it isn't legal. I'll still check out the room but my feedback would be to just lower the fees to attract players instead of all these promos that are just taking money off the table.

Thanks for taking the time to chime in and also express your excitement for our new room. I did pass along your concerns to our Management Team.

I will say that we do provide a variety of value to our members in other ways you may not be aware of:


Players Receive a Free Meal After 3 Hours Of Play (once per day)

PLO Cash Games Are Offered At Just $6/hr

Industry Rate of Just $6/hr

A $60 All-Day Play Pass (purchase it between 8am-2pm any day of the week and enjoy no time fees for that day PLUS get a comped meal as well)



In regards to the $2 promo drop, I used to play at the Tampa Hard Rock and they take $6/hand plus a $2 jackpot drop but also offer extremely popular and frequent high hand promotions. I know some poker rooms charge an administrative fee that means some of the players promo drop funds wind up diverted to the house to keep as revenue. We do not, 100% of the drop collected is returned to our members via a variety of promotions. We've already paid out $1,500 in high hands over the past few days and our Flush Frenzy promotion (running Fri-Sun) is up to $3,000 and will increase by $1,000 each of those days if it is not hit.

Thank you for taking the time to reply. I think it is great that 100% of the drop goes to promotions. As a rec player, the two most important things to me are dealer quality and customer service. It seems like definitely focused on both those things so I am excited to come try the room when I am back in town in the new year. My personal preference leans towards not caring about promos (although I like the PLO cash game discount. I've been wanting to get better at PLO and that is nice incentive) but I might be in the minority of players. Ultimately, more thriving rooms in the area can just grow the poker scene, serve a larger player pool with different preferences, and give players options for the best experiences. Best of luck with your launch!

Doug does your room run tournaments? Does the house take a cut of entry fee? Isn’t this simply fixed rake? Do you have dealer bonus/add ons? Isn’t this the dealers benefitting economically beyond personal winnings?

Questions are legit as I do not play in tx and definitely never your room but I do know the nearly all rooms that run tournaments are clearly violating tx law.

I would also be concerned that while your poker might be legit, you might be in violation of your liquor license. It is my understanding those with liquor licenses can’t sell or serve if charity bingo or poker is going on.

Fore, we have a specific TABC license that allows its use. The Lodge has a ridiculous amount of attorneys and we do our best to comply with every area of the law (I think we are doing a good job!).

We charge an access fee in order to enter the tournament and we charge seat rentals to sit at cash tables. I know this seems obtuse and needless but there is a difference, none of "the pot" is being taken in order to run these games.

With respect to dealer addons, my understanding is they are OK as long as they are completely optional. A forced DA is not optional, that said I'm not as familiar with this area. Can circle back here later if that's still an important issue for you.

Gents,

I appreciate everyone's feedback on this topic. Unfortunately Texas does not have a gaming commission (YET) to give 100% clarity on these issues. However we believe that a player supported jackpot is allowed under the Texas penal code. Below I have attached the affirmative defense to gambling in Texas, word for word from the Texas penal code. Where it gets tricky is people want to add or subtract words to twist the law in their favor. But the law is black and white. Gambling is legal if it's done in a private place, (we are a private club in which everyone must register to be a member and pay appropriate fees. CHECK....Except for skill or luck the risk of losing and chances of winning were the same for all participants ...CHECK....And here is where it gets tricky, "no person received any economic benefit other than personal winnings".......That is all it says PERIOD. So when a player signs up in our club they understand that $2 of their winnings will go toward player supported jackpots. When a player wins a High Hand promotion or a flush frenzy they WON that money through the game of poker (PERSONAL WINNINGS). No where does it state that players can not put $2 per hand played in a separate prize pool to win at a later time. Technically, giving away $100,000 in a promotion would be in direct violation because you have now awarded a player with an economic benefit that wasn't "personal winnings". As you can see, there isn't a lot of clarity in the current penal code language. I can tell you we are 100% committed to doing things 100% legal and within the confines of the law. We are pushing and hoping for clarity in the near future. I hope this post gives some insight into how we believe the player supported jackpot is LEGAL.


It is an affirmative defense to prosecution under this section that:

(1) the gambling occurred 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.

(c) An offense under this section is a Class A misdemeanor.

I am still trying to understand how tx rooms rationalize away #2 AND dealers getting paid to deal. They are most certainly persons. They most certainly are paid which certainly is an economic benefit.

Some will say they are not paid from the pot but as PokerHouseAustin has posted the precise text. The word pot appears nowhere.

I guess for cash games one could claim dealers are just dealing the game players wanted. They could just as easily deal gin rummy. But tournament dealing is intractably tied to the tournament. They are benefitting from the tournament even if it isn’t a rake from the tournament.

There are other aspects of the tx poker business model which could be reviewed.

I certainly have zero standing to make any ruling. I don’t even claim to have any specific knowledge of tx code. But anyone who wants to claim everything is clear cut and (effectively) decided is kidding themselves.

The argument is that they aren't receiving economic benefit from the money being gambled. It doesn't explicitly state that, but the alternative becomes really absurd quickly.

Say I have a home poker tournament in Texas. $200, no rake. I live downtown, and the people coming to my house to play pay $10 to park in a garage. Is the owner of the garage receiving economic benefit from the gambling? Does that then mean I am violating the law hosting the tournament? Or what if we all pitch in and order Domino's, so the owner of that Domino's is now deriving economic benefit?

Poker House needs to recruit the VIPs (action players) to the room from The Lodge... You should give free time or even pay such players to get games going, its not that hard.... Please make some competition for Doug. So many problems at the lodge (Food options, Parking lot, Bathrooms, No Mid stakes NLHE, Reg infested games) Please get Poker House games going!!!

Are either of those intractably linked to your tournament? Is there entire business exist only to serve the tournament? A poker dealer getting paid from tournament fee or dealer add on is ONLY getting that money if teh tournament happens. His only service provided is directly linked to the tournament. The garage owner is providing a service completely unrelated to the tournament. Same for Dominos but even more so. You all chipped in but you did not take the money from the tournament AND Dominos would be happy to sell those pizzas regardless if a tournament was held or not.

Thanks for the support in wanting to see us succeed.

There's plenty of space in Austin for multiple rooms to be successful and our neighbors at The Lodge hosted a killer 400k guaranteed event recently that easily met their guarantee that is deserving of accolades.

We had a great showing last night at Poker House with multiple hold em cash games running and even a Big O in the mix

I understand your point but that’s also reading words and clarifications that don’t appear in the statute. If you don’t make it bright line to “from the money being gambled” it does make it shades of gray. Say my tourny is very popular and parking is usually free but on tourney nights they charge $10? Or normally charge $5 and now charge $10? What if we rent a hotel ballroom solely to hold the tourney? What if we have a massage provider at the tourney? Is that service intractably linked to gambling or no?

How is the bathroom situation at Poker House? That is honestly one of the biggest reasons I avoid the Austin poker rooms.

I can't take photos in the bathrooms but they are absolutely stunning, with gorgeous marble throughout, similar to our cage area pictured

Poker House Austin just had a winner a few days into February for the Flush Frenzy promotion, scoring $13,000 by winning with all four flushes using both hole cards in hold 'em.

Here's the facebook video showing the winners reaction

https://www.facebook.com/reel/381911461199256

And some shots of Eric R with his lucky dealer Travis plus him being overcome with emotion at the win and then elated.

As someone who used to live in Austin and now comes back and occasionally plays (usually when I come home to see family) the Lodge is the ONLY place in Austin I consider playing. Always tons of tables, good dealers, and good game structures.

The membership rates aren't very attractive if you're in town for just a day or two. You have to purchase a weekly, and it's maybe $20. That "weekly" will cover your first hour of cash play, if I'm not mistaken.

Other than that, I like that room too. Good daily tourneys and pretty much round the clock cash action.

Yeah I thought similar when I was in Texas recently (not Austin). Why not offer anyone with an out of state license a five dollar membership? You would think these places would want business travelers or tourist who can only play one night to stop by.

It’s $15, which is probably $5 too high. But for whatever it’s worth, it’s trivially easy to find a coupon for a free monthly membership online if you Google accordingly.

i know this is a long shot, but......

i'm looking for 1 or more players who may be driving to/from WSOP 2024 from texas and wanting to stay around 2 weeks or so. i am driving out there due to fear of flying & medical issues, and need another person(s) to drive with. i (42m) will be staying with a buddy of mine (25m), at horseshoe. we are chill, no partying on the strip, no slots/pits, just focus on poker during trip like real poker junkies. we have gone for a few years now and really enjoy the series, look forward to it every year. we are mostly cash players, with some tournaments mixed in. my friend is flying in. if you want to room with us, that would make it cheaper for everyone (if not, that's cool).

i have made the drive for many years now. it is a 2-day drive, solo, ~10 hours per day. but maybe can make it a super long 1-day drive with myself and one or two more people to split driving. obviously we would need to meet as a group beforehand, make sure we get along, can stand each other for long drive. also, will be using my vehicle (roomy, nice 4-door truck). i will eat most gas expenses, since this would primarily be accommodating me.

right now, looking at May 29-June 12 timeframe. but i can be flexible to adjust to everyone's schedule.

PM me if interested. looking to get booked soon.

After the first five flights the 200K GTD at Poker House Austin is on-track to have an overlay exceeding $100,000!

But like the Lannister's we pay our debts and the guarantee is guaranteed!

Smaller softer field with a high likelihood of a large overlay seems like just the sort of value tournament players are looking for, don't miss out!

After the 10 flights spread across all participating rooms we have 70 players qualified for Day 2 this Saturday at 1pm and in the money.

There is only ONE last-chance flight this Friday at 6pm to get your bag and we expect to be slammed so arrive early if you can!

Even with that last chance flight it's likely we're going to retain a chunky overlay (currently stands at 55k+) so you'll face a relatively small field on Saturday with a big prize pool and overlay. If you're in Austin you won't want to miss it! And we will play to a winner on Saturday so if you make Day 2 of The Lodges 500K event ours won't conflict.