The Rack, a tiny lounge in Greenwell Springs with packed parkinglots on poker nights, is one of many Texas Hold’em havens inthe state where people socialize and play in tournaments.
“It’s a draw,” said Marion Willett, generalmanager, referring to the Texas Hold’em tournaments The Rackhosts Tuesday, Thursday and Saturday nights at 7 p.m.
Willett said patron turnout has increased by 70 percent sincethe bar began sponsoring these tournaments in June. 
Willett said the players pay $25 for 300 poker chips, and theycan buy 500 more chips for $10.
When players run out of chips, they are out of the tournament.Though some unfulfilled players form their own tournaments at”satellite” tables away from the primary tournament.Like the other players, these satellite players also play for apot.
Willett said on a normal night, 50 people may come to play in atournament, which usually lasts until 11 p.m. or midnight. Thetournaments generate increased food and beverage profits for thebar, especially during the 30-minute break the playerstraditionally take from the game.
Willett said all profits go back out to pay for operationalexpenses.
But The Rack’s tournament days, like many otherbars’, may be numbered.
Beginning today, the Office of Alcohol and Tobacco Control willbe investigating bars it considers to be running gamblingbusinesses. Agents will enforce the penalties associated withrunning a gambling operation “as a business.”
On Sept. 30 at an ATC press release, ATC Commissioner MurphyPainter said the ATC had determined retail outlets conducting pokertournaments were operating as gambling businesses because a”retail outlet serving alcoholic beverages is an unauthorizedexpansion of gambling and is illegal under Louisianalaws.”
In the press release, Painter defined gambling under the 2004Louisiana Revised Statute 14:90 as “the intentionalconducting, or directly assisting in the conducting of a business,game, contest, lottery, or contrivance whereby a person risks theloss of anything of value in order to realize a profit.”
Painter said the Louisiana Revised Statute 26:90 addressesanother violation of state gambling laws. It states “[no]person holding a retail dealer’s permit and no agent,associate, employee, representative, or servant of any such personshall permit any of the following acts to be done on or about thelicensed premises: Intentionally conduct illegal gambling, asdefined by law, on the premises described in the application forthe permit.”
A 1985 state Attorney General’s opinion identified illegalgambling as a business, as opposed to gambling betweenindividuals.
The opinion states retail outlets can be involved in gamblingbusiness in other ways than taking a cut of the pot.
In a 1994 published opinion, former Louisiana Attorney GeneralRichard Ieyoub specified how a gambling operation may be run as abusiness. Ieyoub concluded the business of gambling included”fees charged for use of the establishment…feescharged for use of gambling paraphernalia, tipping of dealers oreven perhaps premiums charged for food or beverages sold by theestablishment or other persons to the participants. A factualdetermination would need to be made on a case by casebasis.”
Today, the ATC will begin investigating retail alcohol beverageoutlets such as bars and clubs and enforcing the two statutes. TheATC will give citations and summonses to offending bars mandatingthey appear at administrative hearings, which will decide theconsequences of their violations of law.
Possible consequences of a violation include suspension orrevocation of a liquor license.
Entities convicted of committing the crime of gambling are finedmore than $500 or imprisoned for six months or less, or both,according to the 14:90 statute.
The bars’ owners may appeal the ruling.
The ATC’s implementation period begins today. The bars arealready fighting against the relevance of the statutes to theirtournaments.
The controversy came to a head last week in District Court in acase involving several bars, including The Rack, who attempted toobtain injunctive relief, prohibiting ATC and Alcohol and BeverageControl agents from investigating while the bars are conducting NoLimit Texas Hold’em tournaments and issuing citations andsummonses.
The hearing was delayed when both parties learned that DistrictJudge William Morvant had participated in a Texas Hold’emtournament in the past. Morvant said this would not affect hisdecision and still presided over the case.
Rand Dennis, an attorney representing the State, argued that aclaim of unconstitutionality, irreparable injury — a claimthat cannot be compensated with money — and an investedproperty right, must be met to grant an injunction.
Joseph Long, the attorney representing the The Rack and BayouBilliards, another bar hosting Texas Hold’em tournaments,said he knew it was difficult to obtain an injunction. But he saidhis claim was legitimate because the law was plainlyunconstitutional and the ATC is conducting an abusive, harassinginvestigation.
Long also said the bars were not profiting from the pot. Longsaid players gambled as individuals, and the bars were notconducting a gambling business.
Celia Cangelosi, an attorney representing the ATC, argued thecourt cannot order an injunction before the ABC commissionerdecides to either suspend or revoke permits of these bars,according to statute 26:108.
Morvant determined the only action the ATC has taken is toinvestigate clubs and bars starting today.
Morvant noted if the ATC suspends or revokes theplaintiffs’ liquor licenses as a result of an administrativehearing, the plaintiffs can appeal the decision.
Morvant dismissed the plaintiffs’ suit as premature andsaid they had 15 days to amend the petition or appeal hisruling.
“I’m without any authority to take anyaction,” Morvant said.
Though the verdict was not in favor of the bars, theowners’ attitudes did not change.
Standing outside the courtroom after hearing the verdict,Willett described the investigating agents as”intimidating.”
Long said the agents have intimidated the bar owners and playersto the point that they do not want to risk running afoul of theATC.
Bayou Billiards owner Tony Jarreau said 12 armed agentsinvestigated his bar during a tournament. Jarreau said the agentsvideotaped the scene.
Jarreau said he lost customers as a result of the investigation,which he said the agents had told him was routine.
“The law is not going to help us until we get arrested orcited,” Long said.
Willett said The Rack will continue to host tournaments, despitethe threat of ATC action.
Thursday night, The Rack’s seven tables were full of pokerplayers, and Willett had an eighth table waiting to be unfolded incase more players came to try their luck.
Willett pointed to the few people at the pool tables adjacent tothe crowded poker area, emphasizing how the tournaments havechanged the bar.
“It’s really our lifeblood now,” Willettsaid.