Dallas Approves Another $70,000 for Poker Rooms Lawsuit

The Dallas City Council voted this week to spend more money in its fight to ban local poker rooms. The Council had voted in January to pay a law firm up to $300,000 to represent Andrew Espinoza, Dallas’ chief building official, in a lawsuit against two local poker clubs and the city’s own Board of Adjustment.

Another $70,000 was approved for the suit on Wednesday. The city has spent some $250,000 arguing against its Board of Adjustment in court. Altogether, Dallas could spend up to $620,000 on the litigation.

The Dallas Board of Adjustment issued a certificate of occupancy to Texas Card House in 2019 and later issued a certificate to another club, Shuffle 214. The city initially gave the green light to the clubs based on one interpretation of state law that suggests poker rooms may be legal. Several Texas cities allow poker clubs as long as they’re in private places, every player has an equal chance of winning and the house doesn’t take a cut of the bets.

This is an exception to a general ban on gambling laid out in Texas law. However, Dallas decided in 2021 that this exception was never meant to apply to businesses like Texas Card House or Shuffle 214. Instead, that exception was meant for private games at people’s homes, for example, according to Dallas Senior Assistant Attorney Gary Powell.

So, even though nothing had changed about the once-approved clubs, Dallas revoked their certificates of occupancy. Texas Card House appealed the decision to the Board of Adjustment and won, getting the certificate back. That’s why the city sued its own board and the clubs, saying the board abused its power when it gave back the certificate.

District Judge Eric Moyé sided with the city in November, ruling that the board had abused its power. Texas Card House appealed the decision, and the litigation has been ongoing ever since.

City Council member Chad West said he was grudgingly voting to approve the extra funds, calling the suit ridiculous and asking when it would end. City Council member Omar Narvaez agreed with West, asking if there was a way to hold off on the suit because Dallas is also working on a legal path forward for the clubs. West asked city staff for an update on this work.

The city attorney, Tammy Palomino, said at the City Council meeting Wednesday: “We have a favorable judgment out of the trial court. We did not appeal that judgment. Texas Card House did. It is in the best interest of the city to defend the favorable judgment in the trial court.”

City staff said an ordinance that could allow poker rooms in the city could be ready for review by the Zoning Ordinance Advisory Committee this fall. Once it gets through that committee, the ordinance will go to the City Plan Commission, then to City Council.

“For me personally, I’d really like to see that come up as soon as possible to council,” West said at the meeting. “By this not being a legal use, we’re just pushing all these operators underground, which is just a recipe for illegal activity going on versus making this a legal use.”