Texas State Senator Jose Menendez (D-San Antonio) has filed Senate Bill 1681 (SB 1681), a companion bill to House Bill 2345 (HB 2345), which seeks to formally legalize social-poker clubs in Texas. Menendez’s bill is identical in core language to Rep. Ryan Guillen’s HB 2345, which was introduced earlier this year in February. Both bills aim to regulate social-poker clubs, which operate on a legal model where poker rooms generate income through methods other than direct rake at the tables.
Though SB 1681 has been introduced, it has not yet been assigned to a committee and may not receive significant attention until Rep. Guillen’s HB 2345 gains more momentum. HB 2345 has been slow to gain traction, lingering for nearly a month before receiving its first reading and being assigned to the Licensing & Administrative Procedures Committee.
Support for the Bills
Both Menendez and Guillen have received backing from Texans for Hold’em, a pro-social-poker lobbying group formed by the owners of some of the state’s largest social-poker clubs. These clubs have been operating in a legal grey area for years, using the loophole where they generate income without directly charging rake, leading to varying degrees of enforcement action across local and county jurisdictions.
Menendez’s Long History with Poker Legislation
This is not the first time Senator Menendez has championed poker legislation in Texas. Before his tenure as a state senator, Menendez served as a state representative in San Antonio. He has attempted several times to bring live poker to Texas, introducing at least three bills aimed at legalizing card rooms.
In 2009, Menendez’s House Bill 222 gained some momentum, passing through an initial committee hurdle with a 6-3 vote in the Licensing & Administrative Procedures Committee. However, despite this success, Menendez withdrew the bill due to fierce opposition from anti-gambling factions and threats of a veto from then-Governor Rick Perry. Additionally, there were rumors that cross-border casinos in Oklahoma had lobbied against the bill, further diminishing its chances of passing.
The Evolution of Social-Poker Clubs in Texas
Since Menendez’s earlier attempts, the social-poker club model has become more established in Texas, though it still operates in a legal grey area. These clubs do not charge a direct rake but use other revenue-generation methods, allowing them to avoid legal issues related to traditional gambling operations. However, this model has led to inconsistent enforcement, with some areas cracking down on clubs while others have allowed them to operate.
What’s Next?
As it stands, SB 1681 and HB 2345 face an uphill battle, with both bills likely to gain more attention and support if HB 2345 generates significant momentum in the House. Texas poker enthusiasts, especially those involved with social-poker clubs, will be watching closely to see if these bills can overcome opposition and lead to a more regulated and legally clear path for social poker in the state.
