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Free Poker Experience Sues New York State

By Dan Cypra for POKER NEWS DAILY | Posted on November 20, 2008

The Free Poker Experience, which is a representative of the Free Poker Network, has filed a lawsuit in the Supreme Court of the State of New York. The organization, which operates free Texas Hold’em tournaments in bars and other establishments around the country, is looking to break into the New York market. Standing in its way is the New York State Penal Law.

According to a press release distributed by the Free Poker Network on Thursday, the Law in New York states “that playing any game wherein you risk ‘something of value’ is gambling. The State further defines ‘something of value’ as anything… ‘involving entertainment or a privilege of playing at a game or scheme without charge.’” Its lawsuit centers on, among other areas, the fact that free tournaments similar to the ones that the company desires to organize are permitted in other industries besides poker. The suit claims, “The statute denies equal protection of the laws, is arbitrary and capricious, selectively applied and enforced, and is in violation of other constitutional rights.”

Benjamin Scheck, Managing Member of the Free Poker Experience, told Poker News Daily, “The law is wrong. If you risk nothing to play, then it shouldn’t be considered gambling. If you rule against us, we expect the State to storm the Harvard Club and the Yale Club and arrest anyone who plays bridge on Tuesday nights.” Scheck added that this selective enforcement means that poker is being singled out, hence the impetus for the organization’s lawsuit.

The Free Poker Network believes it can sign up 1,000 bars and restaurants in the State of New York if free poker were explicitly legal, meaning revenue of $60,000 per week. The notoriety gained by virtue of winning a landmark court case and being the first to enter the market would help drive sales. However, it does not want to jeopardize its status legally as well as the liquor and other operational licenses of the bars in question. Its contract for New York State licensees actually includes a clause that states, “This agreement shall take effect and be binding upon the parties only upon the courts of New York having entered a final declaratory judgment that free poker… is in all respects legal under the laws of New York.”

When the company signs up a new bar, for example, it charges a $60 fee each week that the free poker tournament is run. The Free Poker Network takes a commission and then uses the remaining portion for prize money. Right now, over 400 establishments host the game. Prizes include seats to the World Series of Poker, seats to the World Poker Tour’s Five Diamond World Poker Classic at the Bellagio, WPT Bay 101 Shooting Star seats, Heartland Poker Tour entries, Playstation 3 gaming consoles, custom poker tables, and more.

The lawsuit further explains, “Suit is plaintiff’s only option to resolve this controversy.” In terms of the discriminatory aspects of the enforcement of the law, the brief explains, “When justices and divines are playing bridge at the Harvard Club, the [State Liquor Authority] does not apply the [Alcoholic Beverage Control Law] or the Penal Law. They wouldn’t dare. When chess players are in their clubs or in Washington Square Park playing on concrete tables built by New York City and partially funded by defendant – what police officer is going to arrest them?”

The Free Poker Network operates games in Florida, Indiana, Kentucky, Maryland, Minnesota, Nebraska, North Dakota, South Dakota, Tennessee, Texas, and Wisconsin. Scheck told Poker News Daily that he plans to file a lawsuit in New Jersey as well as 28 other states where free poker tournaments are problematic. The suit is being funded by Scheck and two partners. Free Poker Experience, LLC is based in St. Louis, Missouri.

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Dan Cypra - who has written 781 posts on Poker News Daily.

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