The 30-day civil asset forfeiture deadline has come and gone, and The Lodge Card Club is not currently facing criminal charges. However, the club’s assets, which are valued at well over $2 million, will continue to remain in the state’s possession. This leaves the future of The Lodge Card Club in serious jeopardy.
The Lodge was raided by the Texas Alcoholic Beverage Commission (TABC) and the IRS back on March 10th, less than 16 hours following the Lodge Championship Series Main Event. It’s unclear whether the players, including champion Wayne Harmon ($204,145), ever got paid from that series.
A 22-page affidavit filed by the TABC and obtained by PokerNews a few weeks ago claimed that The Lodge broke the following five laws.
Texas Penal Code 71.02(a) – ENGAGING IN ORGANIZED CRIMINAL ACTIVITY
Texas Penal Code 34.02 – MONEY LAUNDERING
Texas Penal Code 47.03 – PROMOTION OF GAMBLING
Texas Penal Code 47.04 – KEEPING A GAMBLING PLACE
Texas Penal Code 47.06 – POSSESSION OF GAMBLING DEVICE, EQUIPMENT OR PARAPHERNALIA
However, they have yet to face any charges. There could be criminal charges in the future that may result in fines and/or jail time.
Latest developments
Most poker rooms have exploited a loophole in Texas Penal Code 47.04, which allows them to operate as long as rake isn’t collected. The Lodge Card Club, as well as the majority of poker rooms in Texas, has charged players for daily/weekly/monthly/yearly memberships and seat rentals. The law clearly states that “no person can receive any economic benefit other than personal winnings.”
PokerNews obtained a nine-page document filed April 8 in the 480th Judicial District Court in Williamson County, which states that they believe operations at The Lodge Card Club violate Texas Penal Code 47.03 and 47.04. While the money-laundering allegations have been dropped, the document has left the door open to future criminal charges.
An excerpt from the legal document states:
“The evidence resulting from the investigation confirms that Douglas Kevin Polk, Jake Needham Abdalla, and Jason Levin were the Directors of Tempus Holdings, Inc. that managed and controlled operation of The Lodge Card Club, and each had access to and control of the Operating Account and Sweep Account.
“The investigation established that Tempus Holdings, Inc. DBA (doing business as) The Lodge Card Club was receiving an economic benefit other than personal winnings by charging membership fees and seat fees for individuals to gamble.
“In addition, Affiant had probable cause to believe and did believe that, in addition to membership fees and seat fees, The Lodge Card Club was receiving an economic benefit through individuals gambling by selling food, beverages, alcoholic drinks, merchandise, streaming poker play, and hosting poker tournaments.
“As majority owners of Tempus Holdings, Inc., Polk, Abdalla, and Levin participated in a combination or in the profits of the combination regarding the economic benefits receiving by the gambling offenses of Promotion of Gambling and Keeping a Gambling Place in violation of Texas Penal Code Sections 47.03 and 47.04.
Jason Levin, Jake Abdalla, and Polk are the three largest shareholders of The Lodge Card Club. Brad Owen, Andrew Neeme, Jamie Kerstetter, Nick Petrangelo, Jaman Burton, Ryan Fee, Thomas Keeling, Nik “Airball” Arcot, and Ethan “Rampage” Yau are also co-investors in the club.
What’s the future hold?
Given that further criminal charges could be filed, it’s unclear what the maximum penalties could be. At the moment, Levin, Abdalla, and Polk are the three being targeted by the TABC in the latest court documents. While it’s unlikely, a criminal violation of exas Penal Code Section 47.04 is a Class A misdemeanor in the State of Texas, which could see the trio face up to a year in jail and fines up to $4,000.
As for the civil asset forfeiture, seizing assets only needs probable cause that illegal gambling took place at The Lodge Card Club.
The future of this saga remains unclear, though it’s possible that illegal gambling charges could be filed. The Lodge Card Club will almost certainly argue in court in an attempt to get its money back.
As for now, The Lodge will continue to remain closed. They were the largest poker room in the state. They had hinted that the poker club could have opened immediately if they had received their assets back. However, their 200+ employees will continue to search elsewhere for work. The saga will likely continue for several months, if not years.
