Texas Card House Asks Judge to Suspend Poker Room Shutdown Order

Texas Card House, a popular Dallas poker club, is attempting to postpone its closure. Previously, a judge from Dallas County Court supported the city official’s choice to cancel their license of occupancy, thus preparing the club for closure.

Last month, a County Court judge ruled that the high-functioning Texas Card House in Dallas was conducting an illegal gambling operation. Subsequently, proprietors of the card club petitioned District Judge Eric Moye in a plea to prevent the city from implementing the decision until the case is resolved on appeal. They alerted the court that such an immediate closure could strip the building of its 235 employees. In Texas, gambling is not permitted, as in other states, according to Chapter 47 of the penal code; the only exception is with explicit authorization from the state assembly. The challenge presented by the Texas Card House can only be settled by the Texas Supreme Court, and that process may take a few years. Meanwhile, CEO Ryan Crow is vested in the now-risky situation of his $2 million investment in the enterprise.

In December 2019, Crow entered into a lease for the site and gained certification from the city in October 2020. At the start of 2022, Crow received word from city officials that his plans were not legitimate and he was accused of being in operation of a gambling place, which resulted in the termination of his permit. This news came as a surprise to Crow, who had earlier in the year told CBS that he had spent more than two years in conversations with city representatives to find an approved site.

The Carve-out

According to Chapter 47 of the Texas Penal Code, gambling is a defense against prosecution if the activity occurs in the privacy of a residence, no individuals earn benefits outside of their winnings, and all players face the same risk and chances of winning. The Texas Card House and other poker rooms in the state however, maintain that they are private clubs, and poker is a game of skill rather than simply an activity of gambling as they abstain from operating as “the house” by not collecting a rake. In order to cover costs, they have implemented a strategy of charging customers an hourly rate for their time. Nevertheless, authorities are reaffirming their stance that these venues are not providing the same type of privacy as a private home and moreover, profiting from gambling whether a rake is taken or not. Essentially, they contest that the “private” exclusion originally applied to private home games and hence, card rooms are abusing their privileges.

Discretion Abused  

In March, the Dallas Board of Adjustment found that the club was only engaging in activities that had been authorized at the time the city provided them with a permit to operate. However, in his ruling last month, Moye determined that the board had “abused their power and made an illegal decision” when they annulled the city’s cancellation of the business’ occupancy certificate. On November 28th, there will be a court hearing to decide whether to dismiss the enforcement of Moye’s ruling.