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I used to play in a lot of underground poker games in Dallas, Texas, but I haven’t done that in years. It’s not really necessary anymore, because Choctaw and Winstar are both a short drive from the DFW Metroplex.
It did occur to me that a post about underground poker games and what they’re like throughout the world might make for an interesting blog post, though.
It’s just poker played somewhere where it’s against the law.
Laws vary dramatically from one jurisdiction to another, and enforcement also varies from place to place. At one time, most of the underground cardrooms in Dallas operated with impunity. Later, SWAT teams were breaking down the doors of such places on a weekly basis.
How the Underground Poker Scene Works (Generally)
If you’re playing in someone’s home, it’s usually legal to participate in a poker game – as long as no one’s profiting from the game besides the players. In other words, in most jurisdictions, most home poker games are legal.
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But if the homeowner is charging an entry fee or taking a percentage of each pot, the laws start getting trickier. In some jurisdictions, poker businesses are just plain illegal. In others, they’re legal, but you need a license to operate such a business.
Depending on the jurisdiction, it might be legal to PLAY in an underground poker game, even if it’s illegal to host the game and profit from it. At one time, it was a misdemeanor in my area to play in such a game, but it was a felony to host the game.
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Most underground cardroom hosts worry more about armed robbers than they do law enforcement, but that varies based on how aggressive the local police force is.
How Cardrooms Make Money
Underground cardrooms make money the same way casino poker rooms make money.
Most of the time, they charge a rake – a percentage of each pot that goes into a lockbox at the table before the pot is awarded. The standard size rake is 5% of each pot.
It’s not hard to calculate how much money a cardroom stands to make, either.
For Example:Suppose you have a cardroom with 4 tables that operates 12 hours a night, and you have an average of 8 players at each table. Let’s assume that the average pot per hand is about $50.
If there are 30 hands being played at each table per hour, you’re looking at $1500 in pots per table, so $6000 in pots per hour.
5% of that is $300 per hour – over a 12 hour shift, you’re making $3600.
You can adjust those numbers up or down based on the stakes, number of tables, hours open, etc.
At the underground cardrooms I played at, beer was always free, and you were encourage to bring your own liquor. Most of them also offered free meals.
A business generating $3600 a day can afford to offer players such perks.
That’s not the only way to generate revenue from a cardroom, though. The host of such an establishment will also sometimes sell food and drink, especially if the games being played are low stakes.
And some cardrooms just charge a flat fee per hour per player or a cover charge to walk in the door and play.
Other cardrooms offer other casino games like blackjack, craps, or roulette. Such cardrooms might have more in common with an underground casino, though, which is a related but different business.
Underground Poker in the United States
The United States doesn’t have a blanket federal law related to poker. The laws vary by state.
In most states, though, running a cardroom for profit at least requires a license. In many states, it’s just flat-out illegal.
I’ve mentioned some of my experiences playing at the underground poker rooms in Dallas, but one city in the United States is more famous than most when it comes to underground poker:
Underground Poker in New York
In New York, you can play poker without breaking the law, even though hosting the game is illegal.
This has led to a vibrant underground poker scene in New York where some of the clubs have become famous (or infamous, depending on your point of view).
The Diamond Club and the Mayfair Club are the 2 most famous of these, but they’ve both been shut down for over 20 years.
This doesn’t mean that all poker clubs in New York are closed, though. Some of them are still open, while others closed, although at a later date than the 2 most famous ones I just mentioned.
Famous poker players spotted in underground poker clubs in New York City include Alex Rodriguez.
Most poker clubs in New York now are small so as to avoid retaliation from the lawdogs.
Underground Poker in England
Poker is only supposed to be played in casinos, but private games are allowed if they’re low stakes. They even allow poker in neighborhood pubs, although the laws maintain a complicated set of restrictions related to these games.
It’s more or less common knowledge that underground poker games happen regularly in London, but they aren’t as infamous as United States poker rooms like the ones in New York.
Underground Poker in Canada
As in the United States, it’s illegal to run an unlicensed gambling business in Canada – and that includes poker games. In fact, it’s a serious crime where you can face prison time.
Poker rooms are legal in Canada, but as in most of the United States, it seems to be legal in Canada to play in and host a home poker game – as long as you’re not taking a rake.
One difference between Canada and the United States is the difference in the penalties for underground poker. In the United States, such penalties are pretty consistent – at least when you’re talking about the penalties within a specific state. (Such penalties almost certainly vary from one state to another, though.)
In Canada, on the other hand, the judge over each case has a wide amount of latitude in levying penalties and handing down sentences related to underground poker.
Is Online Poker Automatically Considered “Underground” Poker?
The answer to this varies from one location to another. For example, the United States has made it clear that – at least in most states – internet poker for real money is illegal. There are 3 states that offer legalized, regulated poker games.
By definition, any poker site accepting players from one of those states that ISN’T licensed by the state authorities – like an overseas cardroom, for example – is operating an underground poker operation.
And in most states, online poker sites accepting United States players are usually run by overseas sportsbooks.
The wisdom of playing in such games for real money is questionable.
Anyone who remembers poker’s Black Friday on April 15, 2011 knows how frustrating it can be to have your money tied up in an offshore poker room and being unable to access it.
This is a possibility you face when playing online poker at a cardroom that isn’t licensed and regulated in your jurisdiction.
Molly’s Game
One of the most famous underground poker games of all time was hosted by Molly Bloom in an apartment in the Plaza Hotel in New York City. It was a private, high-stakes game that multiple celebrities participated in. Some of the names associated with her game include the Olsen twins, Ben Affleck, and Alex Rodriguez.
She was arrested in 2010 for failing to pay her taxes. She was arrested again in 2013 for money laundering and for running an illegal sports betting business. She was one of 33 people involved in this arrest.
Bloom served a year of probation and did 200 hours of community service after pleading guilty to a lesser charge.
She wrote a memoir about her experiences, titled Molly’s Game: The True Story of the 26-Year-Old Woman Behind the Most Exclusive, High-Stakes Underground Poker Game in the World.
Said book was adapted as a movie by Aaron Sorkin, who wrote the screenplay and directed. Jessica Chastain plays Molly Bloom, and Sorkin was nominated for Best Adapted Screenplay.
Conclusion
A certain type of personality is attracted to underground poker games. In fact, it’s not unusual – after all, gamblers are risk-takers by definition.
I’m not convinced that playing underground poker games is the best way to go about things, though. Living near the DFW Metroplex, I just drive to the Winstar – it’s worth the 30 minute trip for me to play in relative safety and luxury.
Your mileage may vary. Just don’t mistake the information I offer as a recommendation to break the law. I’d never suggest that you do that.
If you decide to break the law anyway, at least be careful when you’re doing so.
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