Opinions On Legalized Poker Room

[memphis-sc 0]

just wondering if anyone has ever heard of a business like this (I copied and pasted from newspaper in Memphis):Nope, it's not at Tunica Photos by Mike Brown/The Commercial Appeal Michael White, president of LPC Ventures, LLC, kicks back at one of many poker tables in his League Poker Challenge lounge. The nongambling lounge will open Monday.Coming to Memphis, it's a poker parlor that you don't have to ante up forBy David WilliamsContact July 23, 2006There's a whole other sort of poker face in Memphis these days. It's the look of disbelief Michael White gets when he tells people he's opening a legal poker lounge where they can play for thousands in cash and prizes. "It's not a loophole, it's just ingenuity," said White, 35, president of League Poker Challenge, opening its first location this week at 5703 Quince in the Yorkshire Square shopping center. Here's how it works: All games are free, but those who choose to subscribe -- $100 per month for individuals, $110 for team players -- will have their statistical performances tracked. Top performers receive invitations to monthly tournaments worth $5,000 to $10,000 to the winners. An annual invitational tournament will pay the winner $25,000. Trips, gift certificates and other prizes also will be awarded at various stages of competition. "All games are played for free. You're just paying us for a service rendered," White said. That service is the statistical tracking, which includes about 25 categories for individual and five-on-five team play. Thus, League Poker Challenge aims to tap into the popularity of poker, plus the sports fan's love of competition, statistics and rankings. And unlike at the Mississippi casinos, White said, "A player never has anything to lose with our concept. In Tunica, they can't play poker without risking value. You'll always be risking money." He said League Poker Challenge also has the advantage of a central and convenient Memphis location for its 5,400-square-foot lounge, which will feature 13 tables in the main room, plus two VIP rooms for corporate events. It looks like a poker lounge -- except there's a sign at the front desk that reads "This is not a gambling facility," and those poker chips don't represent money but rather "nonfinancial-value units." White, an Indiana native, said he and his 25 or so partners -- mostly airline pilots, and about 10 of them from the Memphis area -- figure they've got a concept that can go national. Locations in Portland, Atlanta and Nashville could follow by year's end. A winning hand? Maybe -- although most business concepts don't require this level of explanation and reassurance. "My first reaction was probably pretty cynical, like everybody else," said Bob McPherson, attorney for White's company, LPC Ventures, LLC. But after working with the investors on their concept, McPherson said he's convinced it's legit. "The strongest argument we can make is, nobody ever has to pay anything," he said. As for the cash and prizes, "The prize can be a dollar or a bazillion dollars. If there's nothing at risk, think about it: What's the societal interest in banning gambling? It's not to keep people from winning. It's to keep people from losing. "Well, if I've got nothing at risk, where's the interest in regulating it?" Even so, McPherson said, "I do expect a lot of scrutiny" as the business opens and becomes widely known. Pete Rizzo, senior vice president of sales for the Memphis Redbirds, remembers his first reaction: "I really didn't know what to think, because it was a fairly unusual concept." But after some research, the Redbirds signed on as a corporate partner, joining such entities as Sportsman's Warehouse in Southaven and LPC's Yorkshire Square neighbor, Whole Hog Cafe. White said League Poker Challenge "builds credibility overnight" by associating with the likes of the Redbirds, whose Downtown stadium is widely considered a civic treasure. The Redbirds' audience is more varied, given the stadium's family appeal. But the baseball team and the poker parlor share at least one major demographic -- adult sports fans, with their competitive natures and numbers obsessions. "We know guys love to compete," White said. "This whole world of sports is about statistics."

[JadeTiger 0]

seems like a cool idea. But how do they pay for their overhead. Thats a big building. I know its not on $100 subscriptions. They only have 13 tables. No way they could afford to keep that place open for very long. How many times will someone 'subscribe'? The field will be saturated way faster than they think. But hey, its least someone is giving it a shot.

[jooka 0]

seems like a cool idea. But how do they pay for their overhead. Thats a big building. I know its not on $100 subscriptions. They only have 13 tables. No way they could afford to keep that place open for very long. How many times will someone 'subscribe'? The field will be saturated way faster than they think. But hey, its least someone is giving it a shot.

100/month. if they keep the place busy Im sure it would make plenty. keeping it busy tho is what id wonder about.

[TazDev1979 0]

As long as they have alcohol and food there I am sure they will be able to keep the place running.They have tournaments like that around here in Vancouver and Portland where it is free but you can win prizes. Bars and places such as that offer them for free and hope to make their money on alcohol sales.

[delphi12 0]

seems like a cool idea. But how do they pay for their overhead. Thats a big building. I know its not on $100 subscriptions. They only have 13 tables. No way they could afford to keep that place open for very long. How many times will someone 'subscribe'? The field will be saturated way faster than they think. But hey, its least someone is giving it a shot.

Corporate sponsors dont usually just give "prizes" - they also pay for the right to be the only sponsor from a certain sector - thus a lot of money is probably coming in this way.

[jowest 0]

As long as they have alcohol and food there I am sure they will be able to keep the place running.They have tournaments like that around here in Vancouver and Portland where it is free but you can win prizes. Bars and places such as that offer them for free and hope to make their money on alcohol sales.

Taz, please see my sig below.

[thepelz 0]

There is something like this in Eugene, Oregon, where I go to school, but it is way better. It is called Full House Poker, and opened in November of last year. Apparently it is legal here to run poker games as long as the house doesn't take a rake, so they go around this by charging a membership fee ($100/year) and they take 5% of your buyin (Buy in for 160, get 152 in chips). The dealers work only for tips, so they don't even have to pay them. The game is almost alway 1/2 no limit, but they'll spread anything where you can get a full table above that.They have six tables, with usually around three going on an average night. They also have two weekly tourneys, 50 plus 1 rebuy on Fridays, and 100 on Saturdays. They usually get around 25 players for these. I play there a lot, know the owner an all the staff well by now, and it's a really classy and chill operation. the police have visited and approved it, but made the cash tables 8 max because of some weird law, but i like that more. And it's only 5 minutes away, instead of 100 miles like the Indian casinos. And it's also 18 and up, so all you younger players who cant get in the casinos can come.

[Tiltinagain 973]

There is something like this in Eugene, Oregon, where I go to school, but it is way better. It is called Full House Poker, and opened in November of last year. Apparently it is legal here to run poker games as long as the house doesn't take a rake, so they go around this by charging a membership fee ($100/year) and they take 5% of your buyin (Buy in for 160, get 152 in chips). The dealers work only for tips, so they don't even have to pay them. The game is almost alway 1/2 no limit, but they'll spread anything where you can get a full table above that.They have six tables, with usually around three going on an average night. They also have two weekly tourneys, 50 plus 1 rebuy on Fridays, and 100 on Saturdays. They usually get around 25 players for these. I play there a lot, know the owner an all the staff well by now, and it's a really classy and chill operation. the police have visited and approved it, but made the cash tables 8 max because of some weird law, but i like that more. And it's only 5 minutes away, instead of 100 miles like the Indian casinos. And it's also 18 and up, so all you younger players who cant get in the casinos can come.

You've got to love American ingenuity. Laws be damned, if there's a market for something someone will find a way to provide it. God I love this country!

[ONEgreatness08 0]

cliffs on the novel in the first post?

[yergan 0]

I've thought about a similar concept.Basically, you pay to join a "club". The assosciation running event then puts on a freeroll for members of that club that has prize money = joining fees (take a small %).New "clubs" are formed each night and for each different game:i.e. 1/2 NL club

[CrazyJoe 0]

There is something like this in Eugene, Oregon, where I go to school, but it is way better. It is called Full House Poker, and opened in November of last year. Apparently it is legal here to run poker games as long as the house doesn't take a rake, so they go around this by charging a membership fee ($100/year) and they take 5% of your buyin (Buy in for 160, get 152 in chips). The dealers work only for tips, so they don't even have to pay them. The game is almost alway 1/2 no limit, but they'll spread anything where you can get a full table above that.They have six tables, with usually around three going on an average night. They also have two weekly tourneys, 50 plus 1 rebuy on Fridays, and 100 on Saturdays. They usually get around 25 players for these. I play there a lot, know the owner an all the staff well by now, and it's a really classy and chill operation. the police have visited and approved it, but made the cash tables 8 max because of some weird law, but i like that more. And it's only 5 minutes away, instead of 100 miles like the Indian casinos. And it's also 18 and up, so all you younger players who cant get in the casinos can come.

... this is still illegal if what you say is true... you think 5% of your buyin doesn't count as rake? they are just taking it at a different time, and how do they not pay dealers, there is such a thing as minimum wage in Oregon right, even for servers/dealers that get tips, it's lower, but you have to pay them something dont you?

[jowest 0]

... this is still illegal if what you say is true... you think 5% of your buyin doesn't count as rake? they are just taking it at a different time, and how do they not pay dealers, there is such a thing as minimum wage in Oregon right, even for servers/dealers that get tips, it's lower, but you have to pay them something dont you?

You have a point on the rake thing but as far as the dealers, they are independant contractors. That means they are NOT employees therefore they are not bound to pay any wage.I actually have a call into the guy that runs the club in memphis AND I also have a call into the one in Eugene. I have been trying to start something like this in Portland. We will see what happens.

[DonkSlayer 1]

I think it's probably still illegal. Everything, including the "cash" games, is really a tournament..you amass chips, you get paid based on your chip count as compared to others. You pay to have a chance at the big money. The only REAL way to get around the law would be for someone to have a business model where they made enough out of peripheral client expenditures to support dealers and facility costs, while charging no rake and no tipping dealers allowed. Not sure how you could really do that.

[No_Neck 0]

I think it's probably still illegal. Everything, including the "cash" games, is really a tournament..you amass chips, you get paid based on your chip count as compared to others. You pay to have a chance at the big money. The only REAL way to get around the law would be for someone to have a business model where they made enough out of peripheral client expenditures to support dealers and facility costs, while charging no rake and no tipping dealers allowed. Not sure how you could really do that.

You could do deal your own games just have tables chips and cards available and serve beer and food.Let people set up thier own games, just provide the means or maybe charge per hour to rent the table?

[rivergirl 2]

We had bars try something like this in our city..(i'm from Ontario, Canada) and the bars would run completely free tourneys with nice cash prizes. They assumed that the bar sales would make up for the free money given out. The trouble that they ran into was the government decided that the house "profitting" from running a poker tourney was the same thing as taking a rake and since our government owns our casino (which is suffering badly thanks to our new province wide smoking ban) they were shut down. I know we used to have stops for the Red Hot poker tour but i think since it doesn't pay it's alright. Although this sounds like a great idea, i'm not sure it could fly here. (Also something for other communities to check into before leasing a building)

[simon 2720 0]

I guess it is working out for them. They just opened one up in Portland Oregon, Little Rock AR, and Nashville.

[Dogpatch 2]

So basically they have a $100 buy-in tournament every month, but you have to buy in and then satellite in also? -EV I guess satellite isn't quite the right way to think about it. The daily games are similar to cash games I suppose and you have to perform well for the month. Still crappy.

[simon 2720 0]

So basically they have a $100 buy-in tournament every month, but you have to buy in and then satellite in also? -EV I guess satellite isn't quite the right way to think about it. The daily games are similar to cash games I suppose and you have to perform well for the month. Still crappy.

Yeah, I guess their process is a little hard to follow. I am still confused on how it all works. But did you see that Chris Moneymaker played in their $5000 Free Roll. And I think they changed their web site to www.npcpoker.com