Legalized poker will have to wait in Texas, at least for the foreseeable future. HB 222, which was introduced by Representative Jose Menendez, would have legalized poker and recognized it as a game of skill. The bill is now officially labeled as “Postponed” on the Texas Legislature’s website.
In April, HB 222 was approved in Committee by a 6-3 margin. However, citing a propensity by the state’s Governor, Rick Perry, to veto the legislation, Menendez shelved the bill. The Dallas Morning News quoted the Representative on his rationale for no longer pressing ahead: “You need to know when to hold them and you need to know when to fold them.” HB 222 would have clarified poker as a game of skill under Texas state law. Its text noted, “The development of regulated poker gaming in this state will benefit the general welfare of the people of this state by enhancing investment, development, and tourism, resulting in new jobs and additional revenue.”
Licensing fees were explicitly laid out in HB 222 and a tax of 16% would have been levied on commercial gaming establishments’ gross receipts; charitable poker tournaments were to be taxed at 5%. Money derived from poker would then be used to fund various social projects, including renovation and operation of homeless shelters, medical counseling for the homeless, and assistance helping those without shelter find a permanent residence. A special Poker Gaming Commission would be established to oversee the game, which included extensive provisions for the use of electronic tables.
The newspaper also noted that HB 222 needed effectively 100 votes to pass out of 150 in order to withstand a veto. It added, “Gambling opponents say it’s easy to blame the bill’s failure on a budget bailout. But they argue that the real reason gambling gets no traction session after session is because it’s bad policy.” Among those coming out against HB 222 was the Baptist General Convention’s Christian Life Commission, which questioned the upside of passing the legislation. Menendez may reintroduce a pro poker bill in two years. In the meantime, the State of Texas will anxiously await money due from the Federal bailout.
The Commission established in HB 222 would decide how many poker tables each licensed location can operate. Mandatory approval was given to establishments with Texas Alcoholic Beverage Commission licenses, pari-mutuel licenses, or that filed as outlined in the bill. Poker tournament buy-ins were capped at $100 with tournament fees of no more than $30. Regulations for Bad Beat Jackpots were also outlined, with poker rooms able to award up to $250 on site; the Commission would dole out the residual.
An article in the San Antonio News-Express last month noted that 60 to 65 lawmakers said they would support legislation like HB 222 in 2007, with 55 up in the air. That year, a measure by Menendez “to open the door for gaming licenses to be awarded to horse racing tracks and neighborhood bars” failed to see a vote. The lawmaker represents the 124th District of Texas, which includes parts of San Antonio. He was originally elected into office in 2000.
A spokesperson for Menendez, Don Jones, told Poker News Daily that this was the Representative’s third time introducing legislation: “The first one was a touchy-feely bill in 2005. During the last session, it was a more concerted effort. This session, word came down from the Governor’s office that they would veto any expansion of gambling. They didn’t want to hear any arguments that poker was a game of skill versus a game of chance.” Jones did not know if Menendez would consider introducing another measure next session. Menendez told the Houston Chronicle that fighting an inevitable defeat of HB 222 would create ill will in the future: “Sometimes you flush good will if you put a dead bill out on the floor.”
Poker Players Alliance (PPA) Executive Director John Pappas told Poker News Daily, “The legislature had an opportunity to not only legalize poker, but also to tax and regulate it so that all Texans could benefit from the popularity of this game. Governor Perry deliberately prevented the legislature from fixing these laws by telling representatives that he’d refuse to sign the bill. It’s a shame for the poker community and for the taxpayers who have to pay for Perry’s heavy-handed stall tactics.”