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In this case, the NY events were scheduled to award prizes of considerable value to the average poker player, including -- according to published reports – seats into larger poker events or up to $10,000 in cash. Large prizes of this nature are likely what drew the attention of NY authorities.
Bars and other businesses interested in hosting such events pay a small fee to the hosting company in return for the event bringing in regular, weekly clientele, with the food and beverages sold to players justifying the investment made by the hosting venue. However, if the NY law regarding games of chance was strictly interpreted, participants could be charged with a class-A misdemeanor and bars hosting events could lose their liquor licenses. The fact that the events are technically free to enter is supposed to prevent the events from being deemed illegal in jurisdictions using the traditional "three prong" test to determine if an activity should be defined as gambling, the basis of the complaint by Free Poker Experience. One of those three prongs is the payment (or "consideration") offered by the participant. By being free, poker events of this nature have been deemed legal in many other states where gambling statutes might otherwise apply.
Free Poker League Sues NY State Over Gambling Restrictions
In this case, the NY events were scheduled to award prizes of considerable value to the average poker player, including -- according to published reports – seats into larger poker events or up to $10,000 in cash. Large prizes of this nature are likely what drew the attention of NY authorities.
Bars and other businesses interested in hosting such events pay a small fee to the hosting company in return for the event bringing in regular, weekly clientele, with the food and beverages sold to players justifying the investment made by the hosting venue. However, if the NY law regarding games of chance was strictly interpreted, participants could be charged with a class-A misdemeanor and bars hosting events could lose their liquor licenses. The fact that the events are technically free to enter is supposed to prevent the events from being deemed illegal in jurisdictions using the traditional "three prong" test to determine if an activity should be defined as gambling, the basis of the complaint by Free Poker Experience. One of those three prongs is the payment (or "consideration") offered by the participant. By being free, poker events of this nature have been deemed legal in many other states where gambling statutes might otherwise apply.
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