Texas Supreme Court Lets Dallas Poker Clubs Keep On Dealing

Dallas poker clubs can now relax a bit after the Texas Supreme Court decided not to hear a lawsuit that would have closed down the well-known Texas Card House and its rivals.

Although the Supreme Court's ruling does not settle the question of whether the clubs' activities are lawful in Texas—that might yet be decided later—it does permit them to carry on in spite of state officials' objections.

Poker clubs were first permitted to operate as "social" card rooms in Dallas in 2020. Players pay membership or seat fees, but the house does not keep a portion of the winnings.

As long as "the actor engaged in gambling [is] in a private place [and] no person received any economic benefit other than personal winnings," the card rooms contend, this circumvents the state's gambling law.

Unexpected Change of Heart

After owner Ryan Crow met with city officials for over two years to find a location that was approved, the Texas Card House was finally certified by the city in October 2020.

However, the city abruptly altered its mind in January 2022.  Crow was told that his permission had been canceled and that he was "keeping a gambling place" and would have to close.

Nevertheless, at public hearings, the city's own Board of Adjustment—a group of volunteers chosen by the council—supported the club and reinstated the permit.  To overturn that ruling, the city then filed lawsuits against the board and the Texas Card House.

In August 2024, the Dallas Fifth Court of Appeals overturned a district judge's initial ruling in favor of the city.  The trial court ought to have respected the board's ruling, which found no infraction of the city ordinance, according to the appeals judges.  That ruling is substantially upheld by the Supreme Court's rejection.

Legal Oddness

With the City Council approving at least $550,000 in outside legal fees by early 2023, the unique position of the city disputing its own board in court—basically suing itself—has drawn attention, not least because taxpayers paid the bill.  The Dallas Observer later reported that the ceiling might approach $620,000.

The decision allows Texas Card House and Shuffle 214, another club, to retain their permits for the time being.  In 2023, a judge sided with the city in a different dispute, leading to the closure of a third club, Poker House Dallas.  In the meantime, city authorities continue to support the opening of the Champions Social Club in Far North Dallas.