Texas Alcohol and Beverage Commission (TABC) Director of Communications Chris Porter confirmed to Poker.Org that they were investigating The Lodge Card Club for “suspected money laundering and illegal gambling.”
The TABC raided The Lodge, located in Round Rock, Texas, on Tuesday morning. The Lodge is closed indefinitely.
Under Texas Penal Code 47.04, gambling is generally illegal unless it occurs in a “private place”, such as a private poker club.
Though The Lodge Card Club is technically private, anyone can purchase a membership, which ranges from $10 per week to $100 per month. While they aren’t allowed to charge rake, they charge a “seat rental fee”, which is $12-$13 per hour.
TABC statement
Though many had speculated that Tuesday’s raid was alcohol-related, the investigation is far more serious.
Porter gave Poker.Org the following statement, also telling Poker.Org that he would not make any further comment while the investigation is ongoing.
“Agents of the Texas Alcoholic Beverage Commission’s Financial Crimes Unit, along with members of the Special Investigations Unit and Operations Bureau, executed a search and seizure warrant at Lodge Card Club in Round Rock on March 10 in conjunction with an ongoing investigation into suspected money laundering and illegal gambling.
“The business holds a TABC mixed beverage permit. Approximately 20 TABC agents were involved with the operation along with officers from the Williamson County Sheriff’s Office and the IRS. No arrests were made as part of Tuesday’s operation, and the investigation remains ongoing. No charges have yet been filed against the business.”
The Lodge Card Club’s official statement
Late Wednesday night, The Lodge Card Club issued the following email to their members. This statement, of course, was issued prior to the TABC statement.
“To Our Valued Members,
“As you may be seeing from news reports, state police and the Texas Alcohol and Beverage Commission (TABC) executed a search warrant at The Lodge Card Club in Round Rock this past Tuesday morning.
“Our attorneys are working to understand the reasons behind the search, but at this time, the situation has not been explained to us. Our legal counsel has contacted the relevant authorities and hope to learn more but, in our view, we are operating with integrity, using all the best practices, and for many years have been doing business in absolute accordance with Texas law.
“This is obviously upsetting, and unfortunately, until this situation is fully understood, The Lodge Card Club is closed. As we cooperate with authorities to resolve this situation, please know we are doing everything possible to restore normal operations to include ensuring member assets are secure.
“The Lodge is a community, and we appreciate each of you and the support you have extended our way. THANK YOU for your patience and understanding. We hope to have this matter resolved quickly.”
No comment has been made on The Lodge Card Club’s social media since the raid occurred.
Doug Polk yet to comment
On Wednesday, in a back-and-forth exchange with Tom Dwan, The Lodge Card Club co-owner Doug Polk personally guaranteed that all player funds would be safe. He also labeled the TABC investigation as a “witch hunt”.
He also said that he would make an “in-depth statement” today regarding what happened at The Lodge. At the time of writing, he has yet to make any further comment.
Brad Owen weighs in
Brad Owen, another one of The Lodge’s co-owners, defended Polk in response to one of Dwan’s tweets.
“I feel compelled to stand up for Doug in this instance because I know how much time and effort he’s put into making the room as good as possible – to look after players, employees, and shareholders, and to ensure a lot of safety measures are in place that plenty of other rooms don’t have.
“I could give many examples of him going above and beyond, but personally guaranteeing players will get their funds back when it’s likely going to be somewhere in the 7-figure range speaks volumes on its own.
“I’d be surprised to find out Doug ignored good advice if it was feasible to implement. To my knowledge, we’ve run everything above board so it’s hard not to feel like this is a witch hunt that negatively affects thousands of people in the industry – it’s devastating.”
Owen, along with fellow co-owner Andrew Neeme, has yet to comment following the TABC statement.
