Menendez Introduces Bill #2 to Legalize Poker in Texas

Not to be deterred by a bill he introduced to legalize poker to get high enough on the roster for House vote last May, Representative Jose Menendez (D) of San Antonio Texas USA has sponsored a new bill, called the Poker Gaming Act of 2009 (HB222), which reintroduces many aspects of his former bill HB 3186, seeking regulation and legal accessibility of poker in the state. The bill also proposes creation of a Poker Gaming Revenue Fund to support social services in the state especially activities supporting the homeless.

When interviewed by local radio station WOAI, Mr Menendez said he is not interested in seeing "poker rooms on every corner around the state."

The Texas legislature declared that poker is a game of skill, not chance which is prohibited by the Texas Constitution. The bill stresses that regulating and licensing poker is the best way to ensure that it is conducted honestly and competitively and is free from criminal elements.

"My interest is in seeing places where people could play poker and feel safe," he said. "What I would like to see happen is that you could put together a statewide tournament, where people could be working together with one goal, like a Texas Hold'em Championship for the state of Texas," he said.

POKER TOURNAMENTS AT $100 BUY-IN CAP

Tournaments would be allowable under Menendez's proposed bill, but only with buy-ins up to only $100 and no more than an additional $30 in registration fees. Those caps will not attract high-profile events. Bonus programs such as bad-beat jackpots are also allowed, but with very modest caps: at present, the language in the bill calls for a $250 maximum payout if any such "bonus" is achieved. Licensing for electronic poker tables is also included within the bill.

The bill describes how a variety of outlets could provide poker, including but not limited to: existing pari-mutuel outlets, tribal-gaming interests, bars and taverns, social clubs and other charitable organizations. Supporters of the bill anticipate larger and more successful regular charitable tournaments to benefit a variety of important Texas causes. However, to qualify for charitable status, organizations would not be able to deduct more than 30% of gross receipts for tournament expenses.

Licensed poker operations would be regulated and managed by the Texas Lottery Commission. The Commission would work with other state agencies to create regulatory and licensing schema for all poker providers.

POKER GAMING REVENUE FUND

Menendez's bill also calls for the creation of a Poker Gaming Revenue Fund.

Funds would come from license fees such as: $2,000 for both commercial and charitable operators, $200 for the nonprofit organization, $200 for dealers and $500 a year for manufacturers and distributors of gaming equipment. Funds would also come from taxes on daily gross receipts required to be reported by commercial and charitable operators, at rates of 18% for the commercial operators, a slight discount to 16% for pari-mutuel operators, and 5% for charitable operators.

Menedez proposes that 50% of net proceeds are to be used for many causes related to supporting the homeless. The other 50% of net proceeds are to be directed into the state's housing trust fund.

Scheduling of the bill in the next state legislative session has yet to be announced.

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