Future is cloudy
Two weeks ago, The Lodge Card Club in Austin, Texas was raided by law enforcement. Players were sent home, doors were closed, and assets were seized. And now it looks like those doors will remain shut for a long time. Though no criminal charges have been filed yet, Jason Levin, one of the majority owners of the venue, recently sent an e-mail to employees in which he said that the club would stay closed “for the foreseeable future.”
While that doesn’t necessarily mean doom for The Lodge Card Club, using a term like “foreseeable future” is not good.
“While no charges have been brought, and we maintain that the club has always operated with the utmost integrity and within the laws of Texas, the Williamson County District Attorney’s office has made clear to our attorneys that they believe The Lodge’s current business model does not comply with Texas law,” Levin wrote. “For this reason, we cannot re-open. Doing so would run the risk that authorities might once again raid The Lodge, seize more cash and assets, and potentially make arrests. Because we have not been given any indication of when the investigation will conclude, we have no other viable path forward at this time.”
The most devastating consequence of all of this is that every employee of The Lodge is now out of work. Levin said that they would all be welcomed back “with open arms” – and there is no reason to doubt that – but when and if The Lodge will reopen is a major question mark. It certainly looks like it will at least be several months.
Legal question marks
The Lodge, which rose to great popularity in part because of the minority ownership positions of poker celebrities Doug Polk, Andrew Neeme, and Brad Owen, has operated in a sort of legal gray area in Texas. And it is not the only one; there are a couple hundred in the state.
Gambling is against the law in Texas (ironically, considering the name of poker’s most popular game), but The Lodge and others believe they are operating within the law by not charging a rake to play. Instead, the poker room charges membership fees and seat fees, and makes money on the sale of food and beverages.
Despite that, though, the Texas Alcohol and Beverage Commission (TABC) raided The Lodge on March 10, and the since-published search and seizure warrant indicates that the club is under investigation for alleged money laundering and illegal gambling. Whether the allegations have any teeth remains to be seen, but the situation is serious enough for The Lodge ownership to have no idea what the future holds.
