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Austin's poker house scene continues to flourish through a loophole in Texas gambling laws. (Palms Social Club/Facebook)
Six days a week, thousands of onlookers tune in to live streams to watch the pros rake it all in at high-stakes poker tournaments. The big-name poker players aren't in Las Vegas or even Oklahoma's finest casinos—instead, they're where Texas Hold 'Em gets its name.
Gambling may be illegal in Texas, but over a hundred poker houses are using a loophole to open up shop across the state, especially in Austin and Dallas.
The classic poker game is finally getting played for real cash around the Lone Star State thanks to an exception in Texas' gambling ban that allows poker games to be played in private residences. Instead of taking a cut from the pot like traditional gambling ventures, private poker houses don't make money from the results of a game; instead, they get their revenue from membership and hourly fees.
It's a business strategy that's gone (mostly) unchallenged by Texas politicians, especially as the industry begins to heat up.
Austin may now have around 20 poker houses around town, but it wasn't long ago that one stood alone like a small town saloon. The city's premiere poker house, Texas Card House, was founded in 2015 and has since grown to include a YouTube channel with over 30,000 subscribers, a wide range of gameplay and regular visits from big-name poker gurus like Brad Owen and Doug Pope.
David Lagana, a content creator who has worked in college sports and Hollywood, was brought into the scene in May as the house's live streams began to blow up. He said the live streaming battleground is only beginning.
"The space is ever-growing," Lagana said. "It's been interesting to try and find a lane that everybody can succeed. It's all about finding something that people want to watch on a nightly basis."
Carolyn Hapgood, who has worked for Texas Card House for three years, has made a name for herself as a live stream producer, dealer and player herself with the company. She's seen Texas Card House grow from a two-room card house to the most well-known poker venue in Austin with another branch in Dallas.
"It was a teeny tiny little house with five tables, and that was the first legal card house in the state," Hapgood said. "And since then it's blown up."
Texas Card House dealer Carolyn Hapgood has been working with Austin's premier poker house since 2018. (Texas Poker House Austin/Facebook)
From $100 pots to buy-ins of $15,000 or more, Texas Card House has it all, especially as in-state players learn more about the game. Hapgood said there isn't really a typical poker player at the house—instead, the poker table forms an "interesting little ecosystem" that includes college students, a 93-year old Vietnam War veteran, online gamblers, old-school players and everyone in between. The diversity at the table has been enhanced even further by COVID as people clamor to return to in-person events.
But Texas Card House no longer holds a "royal flush" in Austin's poker culture. The Lodge, based in Round Rock, is now expanding to over 60 tables, the largest in Texas, while Palms Social Club, owned by Texas Card Houses' original owner Sam Von Kennel, brought service staff and a refined atmosphere to the Austin scene.
Hapgood said the base of poker players is very large and continues to grow, forming a community as players form friendships on and off the table.
"My favorite part of the poker community is how much fun we have," Hapgood said. "You sit at a table with eight of your friends, everyone's kind of just having a good time. There's a lot of players who will, you know, call or text each other after they're done playing, and they end up inviting each other barbecues, and going out to dinner with their families and stuff like that... those are my favorite people to hang out with."
Getting involved in the poker scene is as easy as tuning into a live stream, and Lagana hopes to see more outsiders like himself get inspired by poker in the future.
"It's kind of like life," Lagana said. "Life isn't just one hand to play... you're only in control of sort of what's in your hand (and) you can't play the card that you weren't dealt with. So it's really been a fascinating life lesson for me."
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Historic preservationists, for their part, overwhelmingly support historic zoning, which would preserve the buildings in perpetuity. The Historic Landmark Commission unanimously voted to initiate historic zoning in July, citing architectural significance, landscape features and association to historic figures. City staffers recommend historic zoning, calling both structures one-of-a-kind examples of vernacular architecture.
Tarrytown neighbors have also banded together to stop the demolition. Many have written letters, and a few spoke at the meeting. “How could anyone buy this property with the intent of destroying it?” Ila Falvey said. “I think it’s an architectural treasure.”
Michael Whellan, an attorney representing the property owner, said that the claims made by preservationists are shaky. The buildings are run down, he said, and have had substantial renovations. A structural engineer hired by the owner said any attempt at preservation would involve tearing down and rebuilding – an undertaking Whellan said would likely cost millions.
Whellan also argued that any historical significance derived from the property’s association with Delisle and longtime owner C.H. Slator is dubious. “These men are not noted for any civic, philanthropic or historic impact,” he said.
What’s more, according to Whellan, Slator likely participated in segregation as the owner of the Tavern on North Lamar Boulevard between 1953 and 1960.
A city staffer, however, said she found no evidence to support the claim. “We would never landmark a property where a segregationist lived, or there was a racist person,” Kimberly Collins with the Historic Preservation Office said.
Commissioner Awais Azhar couldn’t support historic zoning in part due to lingering uncertainty about Slator. “Focusing on that factor is not here to disparage an individual or family. It is not about playing the race card. This is an important assertion for us to consider as Planning commissioners,” Azhar said.
Commissioner Carmen Llanes Pulido said that allegations of racism should come as no surprise. “We’re talking about white male property owners in the 1950s, in Austin, on the west side – and of course they were racist,” she said. But she argued that allowing the house to be demolished based on these grounds does nothing to help people of color who have been harmed by racism and segregation.
The question of tax breaks was also controversial. Michael Gaudini, representing the property owner, said that the tax breaks associated with historic zoning would exacerbate inequality by shifting property tax burdens to less affluent communities. City staffers estimate that the property, appraised at $3.5 million, would get either a $8,500 or $16,107 property tax break annually, depending on whether a homestead exemption is applied.
Commissioner Grayson Cox preferred the commission focus not on tax breaks but on whether the structures merit preservation. “To me, nothing in the historic preservation criteria lists, is this person deserving of a tax break or not?”
Azhar, on the other hand, said he plans to propose a code amendment getting rid of city property tax breaks for historic properties.
The commission fell one vote short of recommending historic zoning, with six commissioners in support and three opposed. Azhar and commissioners Claire Hempel and Greg Anderson voted against.
The odds of City Council zoning over an owner’s wishes are slim. Nine out of 11 members must vote in favor, and there have only been a handful of such cases over the past several decades.
