Chad Holloway Offers His Theories About That Recent Texas Poker Room Raid

Poker pro Chad Holloway offered his theory as to why the Texas Alcoholic Beverage Commission (TABC) raided a Round Rock, Texas poker club co-owned by poker pro and podcaster Doug Polk on March 10.

As a recap, the TABC affidavit included the following: 

• Texas Penal Code 71.02(a) - ENGAGING IN ORGANIZED CRIMINAL ACTIVITY
• Texas Penal Code 34.02 - MONEY LAUNDERING
• Texas Penal Code 47.03 - PROMOTION OF GAMBLING
• Texas Penal Code 47.04 - KEEPING A GAMBLING PLACE
• Texas Penal Code 47.06 - POSSESSION OF GAMBLING DEVICE, EQUIPMENT OR PARAPHERNALIA

The Internal Revenue Service (IRS) is also involved with the investigation, suggesting this action stretches beyond state enforcement.

And Holloway's theory? 

It may not be about the legality of poker in Texas, nor involve alcohol. It may also explain why no other clubs have been impacted.

I have a theory -- it involves FinCEN & the Bank Secrecy Act -- that I'll highlight in the below. 

Before I do, I want to clarify that it's just speculation, and that Doug has announced he'll be relasing a video soon, so I'm sure we'll learn more details then.

Here's a possible explanation as to what's going on.

Similar poker clubs in the Houston and Dallas areas have dealt with law enforcement actions in the past, but each of those cases hinged on the so-called "grey area" of operating such a business in Texas. 

Poker clubs are "permitted" in the state by offering private, peer-to-peer games. These clubs run using a private membership business model in which they charge, hourly seat fees or membership dues instead of taking a "rake" (a percentage of the pool).  The latter is prohibited by Texas law. 

But, as previously mentioned and alluded to by Holloway, The Lodge Card Club raid does involve allegations of financial improprieties, money laundering specifically. 

Holloway goes into greater detail via his podcast with the time stamps featured below the video for those who wish to jump to their favorite subject matter. 

In this weeks episode of the PokerNews Podcast, Chad, Ben and Mike discuss the latest updates from the situation at The Lodge, Poker "Chess" Clocks and Hellmuth Slowrolled. 

00:00 Welcome to the show 

00:50 How you feeling about The Lodge? 

03:30 Is the real story about The Lodge? 

03:55 Bank Secrecy Act (BSA) & FinCEN 

11:13 BSA Requirements 

12:50 Update: The Lodge lays off staff 

16:00 Viral bustout hand at PokerStars Open Philadelphia 

20:33 Triton Tempo – poker’s chess clock 

26:10 Kelly Lucas slowrolls Phil Hellmuth 

31:11 David Sklansky passes away

Holloway is not the only poker pro to chime in on this matter. 

Arguably one of the most successful players, and someone who has had his differences with Polk, Daniel Negreanu, finally offered his assessment the other day.  

Negs says he hopes this all works out for Polk and The Lodge.  Others have been less kind - Wade Townsend and Tom Dwan specifically. 

• Nagesh Rath, Gambling911.com