Playing poker for money is illegal ... most of the time
By VICTOR GRETO, The News Journal
Posted Monday, March 3, 2008


The difference between the poker played at Shane and Laurie Anderson's home in The Legends, a pricey housing development in one of Delaware's fastest-growing areas, and what is going on in dozens of other homes in Delaware may only have been a matter of degree.

The Andersons and housemate Matthew Balotin face gambling and child-endangerment charges after Middletown police busted them at their home a week ago. They are out on bail.

When the Andersons' game grew in popularity over the past year, and after they reportedly installed an ATM machine and had a topless waitress or two -- one of whom may have been Laurie Anderson -- it became something more than just a game.

Parking problems provoked complaints from neighbors -- some of whom, police say, participated in earlier, low-key games -- which triggered the investigation.

But take away the topless waitresses and pots that held thousands of dollars, and the charges help expose the ambiguity in Delaware's gambling laws: Playing unlicensed poker for money is illegal. Probably.

State officials and others who are in a position to deal with gambling and the problems that arise from it are confused.

"The lines have gotten so blurred," said Lisa Pertzoff, executive director of the Delaware Council on Gambling Problems. "I thought the Friday night penny poker game was legal, but a deputy [attorney general] assured me it was wrong. I thought it was illegal only if the house took a cut."

And don't bother asking the Attorney General's Office, which prosecutes gambling cases.

"The Department of Justice does not analyze the statute for hypothetical cases," the office responded to a News Journal request for clarification. "When charges are brought to our attention we make prosecution decisions by reviewing them individually on their merits."

Frank Long, former chairman of the Delaware Gaming Control Board, who has dealt with gambling issues for nearly a decade, is certain of the rules.

"Anytime money is exchanged, it's against the law," he said. "It's simply against the law to gamble without a license. If I decided to start up a poker game, that would be against the law, just like illegal numbers."

But poker playing among friends has been going on for generations.

"There are 20 to 30 games that go on throughout the area," said Sean, a professional gambler from Stanton, who says he now spends up to five nights a week in Atlantic City making a living playing poker. He declined to give his full name. "Are they going to bust everyone who has their college buddies over to smoke cigars and bet money?"

Probably not. That would take a lot of manpower.

Then again, the bigger players aren't all that hard to find. There are dozens of games played each week in the state, and there are even more people actively looking to play.

There also are Web sites, including homepoker games.com, which allow users to advertise for players to come to their homes. Last June, Anderson advertised on the site to recruit players to his home.

Legal options are out there

There are plenty of legal ways to play poker in the state. You could play poker and win decent money on just about every night of the year in Delaware, despite the fact that only a handful of organizations are legally allowed to hold poker games.

According to John Mancus, chairman of the Delaware Gaming Control Board, these organizations include volunteer fire companies, veterans and fraternal organizations, and religious and charitable organizations.

They also hold games of chance, from bingo to raffles.

There are plenty of rules associated with legalized gambling, from how many times a year an organization may hold a game to how much money can be bet.

This also applies to what has become poker's most popular variant, Texas hold 'em, where each player is dealt two cards, shares five community cards, and the bets often have no limits.

The gaming board licenses dealers, running them through an FBI and state Bureau of Identification check. The board also licenses third-party vendors, those who supply the tables, dealers, chips and playing cards at the games.

Many nonprofits hold their games at a church or firehouse.

Or they hold them at Brandon Buglio's Poker Room Delaware, at 642 Plaza Drive in Glasgow, which has been open for only a year and is now booked through 2008.

Buglio got approval for his facility from the gaming board more than a year ago.

He charges each nonprofit a rental fee, which varies. On average, the games draw about 30 people a night.

"We could hold up to 100 players, so we're nowhere near where we can go," he said.

A calendar on his Web site, depokerroom .com, shows that the hall is busy just about every night of the year.

Although betting is limited, players can walk away with hundreds of dollars. To play, gamblers pay what effectively is a half-hour rental fee of $3 to $6, which the nonprofit takes.

Money not always attraction

Many people play "free roll" poker during poker nights at local for-profit bars. Not for the money, but for the company, and the thrill of winning.

What makes it legal is that players risk no money.

There is no cost to play, and customers are not required to buy liquor or food.

But they often do, which is, of course, the idea. To make the games more attractive, top players can win cash prizes.

For Tracy Walls, who with her husband goes to Timothy's in Newark just about every Tuesday and Thursday evening to play, it's a great way to socialize.

"We've made friends, and most are fun to hang out with," she said. "You're not putting out any money, unless you decide to have a drink."

Walls said people often hang out from 7 p.m. to 1 a.m. At an average of eight people per table, and up to a half-dozen tables, that means a lot of money for the bar.

"We might go early and have dinner or get wings," Walls said. Last Tuesday, she won $100.

There are two licensed Delaware companies allowed to facilitate legal poker nights at bars and restaurants: Ace Haney's Texas Hold 'em Rental and Beckie McMahon's Elite Poker Productions.

More than a dozen bars hold poker nights using one of the two.

Haney's clients include Scrimmages, Max Magee's and Timothy's, and McMahon's clients include Matilda's, Tailgates and the Rox Bar & Grille.

Shane Anderson, who was arrested last week, had partnered four months ago with McMahon, who had been in business for more than a year before Anderson became involved.

Police have alleged that Anderson was using his home poker profits -- the "house cut" or "rake" -- to buy into McMahon's business.

Despite the charges against Anderson, McMahon said that her business is legitimate, and always has been.

"These are just charges, and I think this unfortunate situation will be resolved," she said. "My relationship with him is completely professional."

McMahon said Anderson invested in her company five months ago, after it began to grow and her former partner wasn't interested in expanding.

"The poker community is tight, and we know people," she said. "I met Shane, and he was looking to get into this. In the five months we have been together, we have grown tremendously. We are 100 percent legal. It's unfortunate it has gotten tied to this."

Conspiracy charges

At least two of the charges filed against the Andersons by the Middletown police might just as well apply to anyone who "conspires" with friends to play poker in their homes for money.

One charges that Anderson held "poker games in his residence as a profit-making venture without a license to do so."

The other charges that Anderson conspired with another person to "engage in conduct constituting a misdemeanor and did commit an overt act in pursuance of said conspiracy by committing holding poker games in their residence ... for the purposes of making a profit."

Regardless of the law's ambiguity, there always will be plenty of poker players out there. And the state's system of licensing poker helps fatten the bank accounts of many non-profits, not to mention the bankrolls of entrepreneurs such as Buglio, Haney and McMahon.

Only occasionally does it slap down the most egregious offenders.

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