No Charges Filed Against The Lodge, But State Retains Poker Room's Assets
Criminal charges were not filed against The Lodge Card Club in Texas on Thursday as the 30-day civil asset forfeiture deadline approached. But the poker club's money will remain in the state's possession.
PokerNews has obtained a document filed April 8 in the 480th Judicial District Court in Williamson County that explains why the state is holding on to over $2 million in assets despite no criminal charges being filed.
The Texas Alcoholic Beverage Commission (TABC), along with an IRS agent, raided the Austin-area card room co-owned by Doug Polk and Brad Owen on March 10. A leaked search and seizure warrant revealed the basis for the raid, which was the suspicion of money laundering, organized crime, and illegal gambling.
What’s Next for Texas Poker Room?
The future of The Lodge Card Club is uncertain now that the state can hold onto the money. But Thursday’s outcome doesn’t mean this is the end for the major poker club, nor does it ensure criminal charges will never be filed.
The nine-page court document indicates the state is no longer pursuing money laundering allegations against the major poker club, and instead focusing on the alleged illegal gambling aspect.
Gambling is illegal in Texas, but legal poker is possible through Texas Penal Code 47.04, which states that the gambling can only occur in a “private place” and that “no person received any economic benefit other than personal winnings.”
Many proponents of poker in Texas believe the wording of the law permits membership-based clubs such as The Lodge Card Club, rooms that don’t collect rake, to legally operate. The business model has its detractors in the state, but numerous social clubs that spread non-raked poker games across the Lone Star State operate without pushback from lawmakers.
Thus, securing an illegal gambling conviction against one room likely wouldn't be easy. Illegal gambling (keeping a gambling place) is a Class A misdemeanor in Texas, with punishment up to one year in jail and fines up to $4,000.
The Lodge Card Club opened in 2018, with Polk, Owen, and Andrew Neeme purchasing a stake in the business in 2022. Nik Airball and Ethan “Rampage” Yau have also made investments in the poker club.
Jason Levin, Jake Abdalla, and Polk are the largest shareholders and the three individuals targeted by the TABC.
Texas law requires law officials to file a civil asset forfeiture in a district court within 30 days of seizing property. If the suit isn't filed within 30 days — in this case, by April 9 — the property owner has a legal right to retain the property.
Although a civil asset forfeiture in Texas is a civil matter, it can lead to criminal proceedings. But, per Texas Code of Criminal Procedure Chapter 59 (Contraband), seizing assets only requires probable cause, not proving criminal activity beyond a reasonable doubt.
If the case against The Lodge ever reaches criminal court, that rule does not apply, and the state would have to prove beyond a reasonable doubt that a crime was committed.
There are various potential outcomes in this case, including the state eventually filing illegal gambling charges and The Lodge Card Club disputing the asset forfeiture and getting the money back. For now, the state is retaining The Lodge's financial assets on the basis that they believe there is probable cause that illegal gambling occurred. It remains to be seen if the district attorney will ever file criminal charges against the owners.
The Lodge Card Club in the Austin area has remained closed since the March 10 raid, although the club's card room in San Antonio, which operates under a separate entity, is stil open. It's unclear when or if the Austin location, the biggest poker room in the state with nearly 70 card tables, will reopen. But it's likely the legal process will continue at least for the next few months.
