Written by :
Published on :
Four individuals were arrested by Harris County police Thursday following a year-long investigation into a Katy, Texas poker club operation. Katy is located just outside of Houston.
This is a separate raid from the poker-room crackdown reported two weeks ago. Investigators allege the establishment illegally collected a percentage of poker pots.
District Attorney Sean Teare indicated that organized criminal activity and potentially money laundering charges were involved. Authorities suggested additional poker-room enforcement actions could follow.
Here's the distinction between the two raids in Katy, Texas:
Date Poker room What happened
October 22 101 Poker Club, Katy area Four arrested; more than $118,000 seized. The club subsequently reopened.
November 12 Katy Poker, 24445 Katy Freeway Four arrested in a new raid following an approximately yearlong investigation.
November 13 Katy Poker Local media published additional details about the arrests and alleged illegal rake collection.
We should note that the 101 Poker Club raided on October 22 was back in business just 24 hours after the operation took place.
None of this is new to Texas and state law provides for enough of a loophole for poker clubs to thrive in the Lone Star State.
Lucky J Social Club in Houston was raided in May using drones but quickly reopened
Previously in March, authorities raided a Red Rock poker club co-owned by poker pro Doug Polk called The Lodge. The outspoken poker pro and podcaster referred to the incident carried out by the Texas Alcoholic Beverage Commission (TABC) as a "witch hunt" and promised to guarantee all player funds would be safe during the time the card room remains shuttered. His club re-opened in May after a grand jury declined to press charges.
Texas poker rooms operate in a legal gray area. Instead of operating like traditional casinos, many Texas poker rooms use a membership-based model.
These venues typically charge membership fees, hourly seat fees or access fees rather than taking a percentage of each pot, commonly called a rake. The club earns money from providing a venue and services, not directly from the gambling itself.
- Nagesh Rath, Gambling911.com
