Re:       Proposed Texas Hold’em Poker Regulations

Dear Chairman Lesson and Members of the Charitable Gaming Board:

I am writing today on behalf of the Virginia Charitable Gaming Council (“VCGC”) to ask that the Charitable Gaming Board amend its proposed regulations to allow for the use of electronic Texas Hold’em poker tables.  The VCGC represents charitable organizations such as the Veterans of Foreign Wars, the American Legion, the Fraternal Order of Police, the Elks, the Moose, and other local charitable and civic organizations that use charitable gaming to provide valuable services to their members and their communities.  We believe charitable Texas Hold’em will be an important new tool in helping us provide charitable service to our various communities

The Commonwealth’s existing charitable gaming statute clearly allows the Commonwealth to approve and regulate electronic poker tables.  Section 18.2-340.19 of the charitable gaming statute provides that the Board shall adopt regulations that define electronic and mechanical equipment used in the conduct of charitable gaming. § 18.2-340.19.A.5. emphasis added. This grant of authority includes the power to regulate electronic equipment used in the conduct of Texas Hold’em poker games.

Electronic Texas Hold’em poker tables are quite common in the gaming industry and they should be allowed in Virginia’s charitable gaming environment.  Electronic poker tables are physical tables that electronically shuffle and deal electronic cards.  These “cards” are dealt to the players at a monitor placed at the player’s spot at the table.  These monitors, which also include the player’s electronic chips, allow players to view their cards and to place bets.  The table also keeps track of the bets placed and determines which players win individual hands. 

These tables offer three key advantages over traditional poker tables with human dealers and physical cards and chips.  First, in this era of COVID-19, and the new normal of disease prevention and avoidance, the electronic features of these tables help eliminate the spread of viruses and diseases.  Players do not touch cards or chips handled by other players.  The elimination of the dealer also means one less point of physical contact.

Second, the use of electronic tables allows the Commonwealth access to electronic records of all charitable gaming occurring on the table.  These records can be used to determine the dollar values of chips purchased, the bets that were placed, etc., which will ease in preparing and verifying the statutory reports required under the law.  These records can also be used to determine the amount of fees payable under the statute.

Finally, electronic tables can help ensure the integrity of charitable Texas Hold’em in Virginia.  These tables severely limit the possibility of human interference in the play of charitable poker.  Every time a player touches a card or their chips it creates the possibility, albeit small, that the player could try to illegally alter the outcome of a hand.  The same possibility also exists whenever a dealer handles the cards.  Electronic poker tables minimize, if not eliminate, these risks.

As set forth above, public policy considerations suggest that electronic Texas Hold’em tables should be encouraged by regulation, not prohibited.  As also noted, the statute grants the Board the authority to regulate electronic equipment; regulating electronic Texas Hold’em tables falls within this authority.  The VCGC strongly encourages the Charitable Gaming Board to permit these tables in its regulation. 

Thank you for considering our comments.  Please reach out to me at (757) 287-8364 or to our consultant, Chris Petersen of Arbor Strategies, LLC at 202-247-0316 or cpetersen@arborstrategies.com, if you have any questions regarding our comments.

                                                                        Sincerely,

                                                                       Marty Williams