Betting on the Law: A Beginner’s Guide to Poker Legality in America

By Talia Bock '26

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Picture nights where millions of dollars pass through the hands of Oscar-nominated celebrities and Silicon Valley tech moguls; this is a typical game of poker. Not just a game of cards and chips, poker is a battleground of psychological warfare. (1) Every hand initiates the next calculated performance, as players read their opponents, guard their tells, and navigate a shifting landscape of odds and egos. (2) The legal realm surrounding poker is just as complex and layered as the game itself. Regulations vary widely depending on the jurisdiction, setting, and individuals involved. There’s no universal law for poker in the U.S., making surrounding legislation complex to understand and navigate. A lack of universality highlights the need to explore the foundational elements of poker’s intersection with the law and what gaps remain.  

The legality of poker varies significantly from state to state. (3) Some states, such as Hawaii or Alabama, have laws that largely prohibit or heavily restrict live poker rooms. (4) Others, like Nevada, New Jersey, and California, boast vibrant poker communities with high-stakes, land-based games. (5) Florida is another major hub, home to some of the largest tournaments in the country, like the World Poker Tour showdown, held annually at the Hard Rock hotel. (6) The different poker environments around the U.S. provide testimony to the varied legal framework surrounding the game, and the importance of examining state legislation. 

Among state-level approaches to poker regulation, Florida stands out as a prominent scene with well-established legislation. Much of Florida’s poker landscape is influenced by the Seminole Indian Tribe, which holds substantial authority over gambling operations via negotiations with the state. (7) In 2021, a gaming compact granted the tribe exclusive rights over house-banked card games. (8) However, that same year, Florida lifted betting and buy-in limits for poker games at licensed pari-mutuel facilities. (9) Pari-mutuel facilities, traditionally associated with horse racing and jai alai, are authorized under Florida Statute § 849.086 to operate cardrooms offering player-banked games; the players must compete against each other, not the house (the establishment offering the game). (11) As poker is a player-banked game, its legality in card rooms does not conflict with the Seminole Tribe’s compact. (12) Aside from tribal casinos and pari-mutuel cardrooms, Florida’s poker scene also extends offshore to casino cruises and gambling boats, where games are legally operated in international waters beyond state jurisdiction. (13) 

Online Poker is an entirely different ball game when it comes to oversight and regulation. The primary piece of legislation surrounding online poker is the Unlawful Internet Gambling Enforcement Act (UIGEA), passed in 2006. (14) While the act does not explicitly ban online poker, it does prohibit the knowing receipt of funds over the internet for the purpose of unlawful gambling. (15) This means that financial institutions are barred from processing payments tied to any illegal gambling operation; The UIGEA leaves it up to the states to legalize and license online poker. At one point, the Wire Act (formerly used to completely outlaw online poker) also remained relevant to the scene, as a 2018 decision by the Trump administration found the Wire Act to apply to all forms of online gambling. (16) However, the District Court of New Hampshire held that the DOJ violated the Administrative Procedure Act when issuing the memo. The 2018 memo was set aside, and the previous Obama memo went back into action. For now, the legality of online poker remains secure, but the DOJ has the power to change this with another interpretation of the Wire Act. (17) Political decisions have proven to be powerful forces in shaping how poker laws are written, challenged, and enforced. (18)

Under all these technicalities, many states with prominent card rooms still do not permit online games. As of early 2025, online poker is legally licensed and regulated in eight states, though only six have active, operating platforms. (19) Rhode Island and Connecticut have legalized online poker but have yet to launch any licensed sites. (20) While some states, like New York, are edging closer to legalization, others, such as Florida, remain in firm opposition. (21)

It’s clear that poker laws vary largely throughout the nation, often due to the game's interpretation. (22) While some states have extraneous factors to consider, like tribal gaming compacts, the legality of poker often hinges on whether it is considered a game of skill or chance. Under U.S. law, gambling has typically been defined through a three-part test: (1) Prize, (2) Consideration, and (3) Chance. (23) Prize defines what a player stands to win, consideration refers to what they risk, and chance refers to the role of luck in determining the outcome. Games like roulette or slots hinge on chance, while chess is universally seen as a game of skill. Poker, however, sits in a gray area, its classification long debated by the courts. (24)

Courts use various frameworks to determine the element of chance, but the most widely applied is the dominant factor test. (25) This test assesses whether skill or luck is the primary influence in determining the outcome of a game. However, it is often applied inconsistently or in a flawed manner. The dominant factor test largely suggests a quantitative approach in which skill and chance are weighed against each other to determine which is predominant. Yet, the courts have tended to rely on qualitative reasoning, focusing on whether skill can “override the effect of the chance” as stated in a North Carolina Supreme Court Decision. (26) Under this reasoning, poker will inevitably be considered a game of chance, as no amount of skill can “override” the fact that cards are distributed randomly. Research from the University of Chicago concludes that courts should "operationalize the dominant factor” and look to quantitative data collected over time. (27) The dominant factor test also falls short in its unit of analysis. Courts often look to a single hand of poker, where, statistically, luck may indeed dominate. This narrow view fails to capture the bigger picture. Skill in poker emerges over time, visible across tournaments or an entire career. Just as one wouldn't judge an athlete by a single game, one should not judge poker by a single hand, but this remains a hot topic for debate. (28)

Another element that arises in the discussion of poker legality is the distinction between private and commercial games. Commercial games refer to casino-run or for-profit systems with entry fees or rakes. Private games refer to socially hosted non-raked games. (29) Raking relates to a small percentage of each pot that the house keeps as payment for providing the poker game. (30) Renting seats is the fee associated with occupying a seat at a poker table. Licensed Operations often rent seats or rake a pot for profit on the game. (31) The amount and frequency of the payment are often determined by state or municipal legislation. (32)  

Social poker games are explicitly outlined as legal in 29 out of the 50 states, but with distinct limitations. (33) While social games played at home games are generally permissible, raking the pot or renting seats typically violates state legislation. (34) Authorities may not frequently intervene in casual home games, but enforcement is still possible, especially when there’s suspicion of profit or promotion.

Though true home games often enjoy a higher degree of privacy, non-raked games held in public spaces, such as barrooms, may still face scrutiny. In recent years, enforcement actions have targeted unconventional forms of gambling profit. (35) For example, the Louisiana Office of Alcohol and Tobacco has attempted to shut down no-minute Texas Hold ‘Em tournaments that have become popular throughout barrooms statewide. Even when a bar does not profit directly from the game, authorities may still argue that it benefits indirectly through increased business, ultimately drawing a blurred legal line. (36) 

Often, private games go undetected. There’s no shortage of rumors about celebrity high rollers participating in exclusive, private games, some well-known, others kept more low-profile. Names like Ben Affleck, Kevin Hart, and Jennifer Tilly have made headlines for their poker habits. (37) While only a hypothesis, it is hard to believe such high-profile figures only frequent the popular yet highly public cardrooms, and with so much money in circulation, the intimacy of a private setting is undoubtedly appealing. 

Despite its popularity, poker exists in a gray area, its legality shifting depending on the context, private vs commercial, online vs in-person, and skill vs luck. To some, it may appear reckless or dangerous, but to others, the card rooms become an intellectual battlefield. (38) More than just a game, poker is a calculated art form caught somewhere between luck and skill. From private celebrity games to state tournaments, the line between legal play is often defined by technicalities based on jurisdiction. The legal landscape is just as layered as the game itself. What’s covered in this article offers only a mere glimpse into a world defined by strategy, psychology, and legal complexity. Hand by hand, case by case, both the game of poker and the laws surrounding it continue to evolve.

Endnotes

1. 2024. Apa.org. 2024. https://www.apa.org/news/podcasts/speaking-of-psychology/risk-deception.

2. “Better Good than Lucky: A Legal Analysis of Poker as a Skill Game in a Changing Gambling Climate.” 2024. Wustllawreview.org. July 2024. https://wustllawreview.org/2024/07/01/better-good-than-lucky-a-legal-analysis-of-poker-as-a-skill-game-in-a-changing-gambling-climate/.

3. Ibid. 

4. “Poker Legislation: Is Poker Legal in My State?” n.d. Poker.org. https://www.poker.org/poker-legalization/.

5. Scales, Joe. 2024. “Which State Has the Best Poker Scene? | Ante up Magazine.” Anteupmagazine.com. July 16, 2024. https://anteupmagazine.com/2024/07/16/which-state-has-the-best-poker-scene/.

6. Ibid.; Kuznetsov, Andrei. 2025. “Top Poker Tournaments in Florida for 2025: Where the Big Games Are Happening - Armchair Arcade.” Armchair Arcade. March 20, 2025. https://armchairarcade.com/perspectives/2025/03/20/top-poker-tournaments-in-florida-for-2025/.

7. Bridges, C A. 2024. “Legal Challenge to Seminole Gambling Deal Dropped, Hard Rock Bet App Has New Offering.” The Palm Beach Post. Palm Beach Post. October 29, 2024. https://www.palmbeachpost.com/story/news/2024/10/29/seminole-tribe-pari-mutuels-florida-sports-gambling-jai-alai/75911185007/.

8. “This Document Does Not Reflect the Intent or Official Position of the Bill Sponsor or House of Representatives . STORAGE NAME: H0001Az1.DOCX HOUSE of REPRESENTATIVES STAFF FINAL BILL ANALYSIS.” n.d. https://www.flsenate.gov/Session/Bill/2021A/1A/Analyses/h0001Az1.SGC.PDF.

9. “Frequently Asked Questions.” n.d. Flgaming.gov. https://flgaming.gov/faq/.

10. Passut, Charlie. 2024. “Poker in Florida: The Complete Guide.” Pokerfuse.com. Pokerfuse. February 9, 2024. https://pokerfuse.com/live-poker/united-states/poker-in-florida/.

11. “Statutes & Constitution :View Statutes : Online Sunshine.” n.d. Www.leg.state.fl.us. http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0849/Sections/0849.086.html.; Ibid.; Headquarters, Van Nuys/Encino. 2021. “What Are the Illegal Gambling & Gaming Laws?” Egattorneys.com. 2021. https://www.egattorneys.com/illegal-gambling-penal-code-330.

12. Ibid. ; https://pokerindustrynews.com/author/newsadmin. 2022. “Poker Industry News.” Poker Industry News. March 28, 2022. https://pokerindustrynews.com/usa-poker/florida-poker/.

13. Ibid.

14. Unlawful Internet Gambling Enforcement Act of 2006. https://www.fdic.gov/news/financial-institution-letters/2010/fil10035a.pdf. 

15. Ibid.

16. Ibid.

17. Cerar, Miro. 2009. “Annual Survey of International & Comparative Law the Relationship between Law and Politics.” International & Comparative Law 15 (1). https://digitalcommons.law.ggu.edu/cgi/viewcontent.cgi?article=1126&context=annlsurvey.

18. Ibid.

19. Ibid.

20. Ibid.

21. Ibid.

22. Ibid.

23. Ibid.

24. Is Texas hold ’em a game of chance? A legal and ... https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?article=1330&context=journal_articles. 

25. Ibid. 

26. Ibid. 

27. Ibid. 

28. “Public Poker vs. Private Poker.” Pokerology.com, October 30, 2012. https://www.pokerology.com/public-poker-vs-private-poker/. 

29. “Blocked.” 2024. Upswingpoker.com. 2024. https://upswingpoker.com/rake-poker-strategy-adjustments/.

30. “Is My Poker Home Game Legal?” 2024. Legal US Poker Sites. July 5, 2024. https://www.legaluspokersites.com/is-my-poker-home-game-legal/.

31. “Blocked.” 2024. Upswingpoker.com. 2024. https://upswingpoker.com/rake-poker-strategy-adjustments/.

32. Rose, I Nelson. 2017. “When Is Poker Legal? | Gambling and the Law®.” Gamblingandthelaw.com. June 27, 2017. https://www.gamblingandthelaw.com/column/when-is-poker-legal/.

33. “Is My Poker Home Game Legal?” 2024. Legal US Poker Sites. July 5, 2024. https://www.legaluspokersites.com/is-my-poker-home-game-legal/.

34. Ibid. 

35. Ibid. 

36. Ibid. 

37. “Manhattan U.S. Attorney Charges 34 Members and Associates of Two Russian-American Organized Crime Enterprises with Operating International Sportsbooks That Laundered More than $100 Million.” 2015. Justice.gov. May 13, 2015. https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-charges-34-members-and-associates-two-russian-american-organized.; 2025. Pokerlistings.com. 2025. https://www.pokerlistings.com/blog/top-ten-celebrity-poker-players.

38. Ibid.