The recent popularity of poker tournaments, specifically Texas Hold 'em Poker, has generated numerous inquiries to the Wisconsin Division of Criminal Investigation regarding their legality. At this time, it is the position of DCI that Texas Hold 'em Poker and poker tournaments constitute illegal gambling.
Poker tournaments in which the participants pay a fee to enter for the opportunity to win money or prizes are illegal under two different Wisconsin statutes.
Wisconsin State Statute 945.01(1) provides the definition of a bet as "… a bargain in which the parties agree that, dependent upon chance even though accompanied by some skill, one stands to win or lose something of value specified in the agreement."
Wisconsin State Statute 945.01(5)(a) defines a lottery as "… an enterprise wherein for a consideration the participants are given an opportunity to win a prize, the award of which is determined by chance, even though accompanied by some skill."
Several elements of poker tournaments and Texas Hold 'em Poker cause them to fall under these definitions of illegal gambling activities. Poker tournaments in which the participants are required to pay money to enter (consideration) are clearly illegal lotteries and betting. Another type of consideration would be requiring a minimum drink or food purchase during the event. Even if no purchase is required to enter the tournament, other factors may be enough consideration to make the tournament illegal.
The penalties for violations of these gambling statutes range from misdemeanor gambling for making a bet, or participating in a lottery to felony commercial gambling for operating a gambling place or conducting a lottery. Gambling is a Class B misdemeanor, punishable by a fine of up to $1,000 and/or imprisonment up to nine months. Commercial gambling is a Class E felony, punishable by a fine of up to $50,000 and/or imprisonment up to fifteen years.
A key element of the definitions of both a bet and a lottery is the term "chance, even though accompanied by some skill." It is DCI's position that chance predominates over skill in all poker games and poker tournaments. This is due to the fact that the game involves a deck of cards in which nobody can predict with any great degree of accuracy what card will appear next. There are states, such as California, where poker and other traditional gambling card games are specifically allowed. Wisconsin has not adopted any statutes or exceptions which would allow such gambling activity.
Midwest Poker League offers your establishment FREE Texas Hold'em Poker leagues to your customers in which there is NO entry fee or required purchase. Therefore under the current definitions of the law, Midwest Poker League is 100% Legal to host in your establishment.
