Changes are on the cards

Pub poker has grown in 2006 like the smile on a novice player's face who knows he holds a good hand. But anyone familiar with the game will know nothing is straightforward on the card table.

It would seem the same applies when it comes to pubs hosting poker. Licensees have been caught in the crossfire between the Gambling Commission (GC), warning of the many legal pitfalls of hosting poker, and poker companies continuing to launch new leagues for pub customers which argue that what they are doing is not illegal.

All in all, pubs can be forgiven for thinking that the main players involved - the GC, police forces, licensing authorities and the companies offering the games - are all giving their best versions of a poker face, giving little away. Are any of them bluffing?

Then came last week's announcement by Whitehall that the new Gambling Act may lift the need to apply for a licence to hold poker games (see box, opposite) which could make it easier for pubs to host James Bond's favourite game.

A court case scheduled to take place in the New Year could also rock poker. January 8 will see the Gutshot case go to trial. It has the potential to reshape the legal hoops through which pubs must jump.

As lawyers battle over the future of organised poker, The Publican presents a guide to help. So, under what conditions can pubs hold poker?

Holding poker in pubs without a licence is illegal except under a select number of conditions, as set out in the Gaming Act 1968. There must be no levy on the stakes or players' winnings, nor access allowed to members of the public. It is illegal for pubs to host games that are played for 'money or money's worth', meaning prizes are forbidden.

A pub cannot charge a levy but can make a 'reasonable charge' to cover the costs of arranging the game. For example, £3 for food and drink laid on during the game would be judged to be acceptable.

While a licensee may host a game of poker that satisfies all these requirements from the outset, they are also responsible for ensuring that each player adheres to these rules. It is the publican, not the players, who risks prosecution in the form of fines - or even jail.

David Clifton, of London solicitors Joelson Wilson, is blunt about licensees' chances of monitoring their customers. "Under the current legislation, it is virtually impossible to organise a poker competition legally other than in a licensed casino," he says, "as breaches frequently occur with regard to location, access by members of the public, advertising, charging an entrance fee or making a levy on stakes or winnings."

The Gutshot trial​

London private members' club Gutshot has been the subject of a year-long investigation into breaches of the Act involving taking levies from players. Gutshot is defending itself with the argument that poker is a game of skill, rather than chance.

The Gaming Act applies to games of chance. If Gutshot succeeds, the case will set a precedent for the game not to be subject to the stipulations of the Act. It may therefore free pubs to host poker without adhering to the current strict laws.

With all these issues to consider, is it really advisable for a licensee to host poker?

Poker nights offer decent profits for otherwise quiet mid-week nights - players will spend an average of £10 a night on food and drink, according to the Amateur National Poker League.

Poker companies are adamant that what they are doing is entirely legal, with games played for points, rather than money. They complain that the GC has shown uncertainty over poker, and undue resistance - bordering on a scaremongering approach - to their initiatives.

Dave Brannan, chairman of Poker in the Pub league, says that the company has had "not one single negative incident" and that the GC is creating unnecessary stigma over poker.

"The authorities are praying that something kicks off in one of these pubs so they can turn around and say 'we told you so'. All I want the GC to say is 'if you do that and that, we will not disapprove of what you are doing'," he says.

Piers Warne, a solicitor in Joelson Wilson's licensing, betting and gaming team, says that it is possible for pubs to legally host poker, especially if they take legal guidance.

What constitutes a prize?​

However, Warne adds that pubs must be very careful about the prize situation. Many tournaments involve the top-ranking players from competitions taking place in pubs progressing to regional finals at which prizes are awarded. These are generally staged in licensed casinos or privately-hired licensed venues. Warne advises that this doesn't necessarily put the pub on stable legal ground. Courts are likely to see winning progress through to an occasion at which prizes are on offer as a prize of 'money or money's worth' in itself.

Phill Brear, GC director of operations, agrees. "There have been no cases yet to test on which side a court would come down," he says. "We shall have to wait and see, but we would give the advice that it would see it as a prize of money or money's worth."

So if a licensee sets up a game of poker, adhering to all these regulations, are they home and dry?

The problem is that they are still liable for the actions of all their customers. If they decide to introduce their own independent bets on the game - side bets - that counts as a contravention of the law by the licensee.

Brear believes there is a real danger of this happening. "When six people are knocked out of the main game, what are they going to start doing in the corner of your pub?" he asks. "You are naive if you think they will be doing anything other than playing poker, and naive to think they will be playing for matchsticks. Playing poker without money is like playing football without a ball.

"It is very difficult for the licensee to stop that. It is possible to construct a legal game but how does the licensee stop his customers from making it illegal? Licensed casinos have a lot of security and employ lots of supervisors because - fact - people cheat at cards."

To help combat this Poker in the Pub has representatives available on the night at league games to monitor the players.

A new Gambling Act, due to come into force in September 2007, should go some way to clarifying the many questions surrounding poker.

Currently in consultation phase, the Gambling Act 2005 will allow pubs to offer nominal prizes and make small charges for entry. The Department for Culture, Media and Sport will stipulate exact limits for these.

Brear expects them to be "so low that the game is almost worthless".

Crackdown in store?​

Last summer, the GC distributed guidance to licensees. It wrote to police forces, local authorities and trade associations, reminding them of the law. This was heralded at the time as a clampdown on illegal games, but pubs seem to have escaped any meaningful punishment.

Warne says that poker's current position in the public eye has made it more noticeable to the bodies that are able to prosecute: the GC, local police forces and licensing authorities. "The heat is on," he says.

It has been claimed that these bodies have not pushed prosecutions of licensees so far because they are concentrating resources on the Gutshot case and waiting for the clarification that will arrive with this and the new Act.

Poker in the Pub is adamant that it is possible for licensees to host poker events, but lawyers urge caution

What's legal now - and what could be​

Pubs could find it easier to host poker following a recent announcement by the Department for Culture, Media and Sport. It stated that consultation on the new Gambling Act has raised the possibility of removing the need for pubs to apply for a special licence to host the game.

As it stands, pubs must run poker under a select number of restrictions, or apply to licensing authorities for the right to run it under standard gaming conditions.