General Affairs

Special poker license proposed

The Nebraska Liquor Control Commission could issue special liquor licenses for poker games under a bill heard by the General Affairs Committee Feb. 2.

LB619, introduced by O’Neill Sen. Tyson Larson, would authorize two types of poker—draw and community card games. The bill defines community card games as those, such as Texas Hold’em, in which a player combines the cards he or she is holding with community cards that all players share.

Under the bill, liquor licensees could apply for a poker endorsement to their liquor license and for a special poker license (SPL) with a special designated liquor license (SDL) for events on or off the licensee’s premises.

Nonprofit organizations that qualify for an SDL also could apply for an SPL. Any entity or person accepting wagers on a game conducted under a special designated poker license would be prohibited from extending credit to a participant.

An SPL would require approval of the local governing body, which may establish criteria for approval of an SPL. The fee for an SPL would be $40 for each day of the event. In addition, a licensee would remit 10 percent of the gross proceeds of a poker tournament and 5 percent of the final amount in each pot of a cash game to the Liquor Control Commission.

If an event were held within the boundaries of a city or village, proceeds would be distributed as follows:
• 50 percent to the Property Tax Credit Cash Fund;
• 24.5 percent to the country treasurer of the county in which the event was held;
• 24.5 percent to the city or village in which the event was held; and
• 1 percent to the Compulsive Gamblers Assistance Fund.

If the event were held outside the boundaries of a city or village, 49 percent would go to the treasurer of the county in which the event was held.

Testimony focused on whether poker should be considered a game of chance or one of skill. The Nebraska Constitution prohibits the Legislature from authorizing games of chance. In the bill’s statement of intent, Larson contended that poker is a game of skill.

Testifying in support of the bill, Adam Clayman, a poker player from Ogallala, agreed. Poker is inherently different from games of chance like roulette, he said, in which “you have nothing but gut instinct … it’s all risk.”

Poker, on the other hand, is a game of skill, he said. For example, he said, players can learn to improve their chances of winning.

“A professional poker player will hire a coach—a tutor—to improve their playing skills,” Clayman said.

Pat Loontjer, executive director of Gambling with the Good Life, testified in opposition. Gambling bills invariably are subject to filibuster, she said, and those that pass almost always result in legal challenges. Lawmakers could be spending their time on more productive measures, she said.

“Why would we want to put our time and energy into something like this?” Loontjer asked.

The committee took no immediate action on the bill.

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