1. You Can Be Cheated. One of the main reasons behind the rise of regulated casinos in places like Las.
2. However, local activities such as poker parties in a professional area, underaged gambling with those under the age of 21, dogfights and human fight clubs are normally illegal. Some states may legalize certain activities to support colleges or for local businesses, and it is important to know the difference based on the state.

It is illegal to play poker online for money in the state of Washington. The state of Washington passed a law in 2006 making online poker a felony. Full Tilt Poker and PokerStars responded by no longer offering services to residents of that state, but they continued to operate in the rest of the country. These players strike gold at a poker table with the help of the dealer. Then, they share their winnings with that illegal venue. Even though you’re playing fair, you can’t really win in these cases. You Might Get Robbed. If we are to believe some gamblers, this happens a lot in underground casinos.

What Is Underground Gambling and Why It’s Risky

The mere mention of illegal gambling builds up stereotypical images of extravagant underground casinos which are reserved only for high rollers who win or lose someone’s income in the course of one evening. Admittedly, some venues move mountains to recreate this feel and live up to the stereotype. And they do attract celebrities and billionaires who end up playing a game or two. For instance, you’ve probably heard about many A-listers who frequented some high-stakes underground poker rooms.

Those places do exist, albeit in lower numbers, until they draw the attention of the law enforcement who break in to stop them. But for most of us, the reality is far more ordinary. If we do encounter such casinos, then we’ll come across a few slot machines situated in the back of a smoky bar. Or we’ll play card games in some office or warehouse and get fewer incentives than we’d get in a legal casino. As a case in point, we can mention one underground Texas business where people are regularly trying to beat 75 slot machines. They’re located at a former tire store.

See? This doesn’t really lend itself to an over-the-top Hollywood movie or any work of fiction for that matter. Still, one thing is for certain — this is a highly profitable business that comes with a major risk. So what is underground gambling and how can you identify it? According to the law, you can spot such a business if it is in clear breach of the state law. Aside from this, it has to include five or more people. On top of that, that venue has to be operating for more than 30 days and earning about $2,000 each day. If it ticks all these boxes, then it’s pretty much an illegal venture that offers underground games.

The Dangers of Underground Gambling

Illegal gambling is not without its attendant risks. Simply put, there is no basic protection that you’d find in a regular casino. If you ever do visit an illegal venue, you’ll notice that some of the other things you take for granted are lacking. For instance, ethical conduct isn’t high on its list. Also, some experts believe that these places prey on those with gambling addiction. We’ll mention some of the dangers you might encounter below.

1. They Might Collude Against You

Game integrity is one of the essential reasons why regulated casinos have opened in some states. In the past, gamblers expected to get scammed while playing games of skill. However, some organizations ended the gambling lawlessness in this industry. For this reason, many underground casinos began to profit. Even today, some of them are run by incapable individuals who indulge in illegal activities.

Moreover, those who are in charge are, most commonly, passionate gamblers who’ve decided to turn this into a profession. Don’t think that they’re more prone to ethical conduct than major companies — they aren’t. In fact, there are instances of the house colluding with other players who assist them in generating profit. These players strike gold at a poker table with the help of the dealer. Then, they share their winnings with that illegal venue. Even though you’re playing fair, you can’t really win in these cases.

2. You Might Get Robbed

If we are to believe some gamblers, this happens a lot in underground casinos. For instance, one time, a group of robbers broke into an office building situated between 5th Avenue and 28th Street in New York City. This place hosted a game of underground poker. Logically, they immediately rushed to the high-limit table. Here, they took all the jewelry and cash they could find. On top of that, they stole other valuables from some business titans, and no one could stop them.

Frankly, these robberies are potential threats in underground gambling. And some of them even ended in shootings in the past. Therefore, we’re not sure whether a chance to spin the reels is worth this kind of danger. Say all that you want about commercial casinos, but at least the possibilities of this happening there are slim to none.

3. The Authorities Might Bust It

Don’t worry — thieves are not the only threat here. It’s even more plausible for the authorities to barge in. In fact, they are becoming more hostile towards illegal gambling and want to shut it down in their respective states. They don’t focus only on the people running it, but on those playing as well. If they find you within the premises during their raid, the chances are that they’ll charge you for breaking the law.

For instance, law enforcement in Arizona has been carrying out a lot of raids recently. They’ve been able to locate a number of underground rings, much to their delight. A spokesperson for the Arizona Department of Gaming said that the court would show leniency neither towards the players nor the operators — they will all appear in court. The latter will also be accused of racketeering, among other things. So don’t just presume that only the operator is going to face jail — all those participating will. So if you want to avoid this, don’t visit an underground casino, and look for legal ways of playing games instead.

Why Is It Appealing?

When you come to think of it, it’s understandable why some players decide to engage in this form of gambling. In the United States, you can’t really locate a casino in every city due to some strict laws. Thus, those who want to scratch an itch are only left with the possibility of trying to find places where they can gamble. They are okay with wagering under-the-counter, just as long as they get to play their favorite game.

Some find it appealing that certain underground casinos don’t impose a minimum bet. They believe that this puts the pressure off of them, and they can relax without worrying whether they’ll have the required amount of money to continue playing. Aside from that, others are attracted by one more thing which one can’t have in a legal casino. We’re talking about the chance of betting not only your money, of course. Those who don’t have a lot of cash can wager other items and still be allowed in the game.

Cars, houses, apartments, and jewelry can get you far in underground gambling. To be specific, they are common betting items here. People resort to them only in desperate times, but these casinos still accept them. Some gamblers lose all of their money and believe that the last round might help them return it. This is why they use their, say, car and remain in the game. Sadly, more often than not, they’re left devoid of the money on the table and their valuable belongings.

What’s more, some gamblers approach illegal bookmakers. The reason why is that they don’t need to pay taxes, and thus, these bookmakers provide better odds. They also accept wagers over the phone, which those operating a legal venue do not. And the best part is, you can find them in underground casinos as well. For instance, you can wager on the outcome of a certain sporting event. The thrill of making a wager in a seedy place is highly attractive for some. Although, we’d say that it’s not worth the risk. But bear in mind that, if something goes wrong, you won’t have anyone to turn to. There are no regulatory bodies that might come to your aid.

The Decision Is on You

In this article, we strived to answer the question “What is underground gambling?” With the points we made, we hope that you’re now aware that you should approach underground gambling at your own risk. So if you realize that it might bring more negative things than positive, then you might be best off in a regulated casino.

I used to play in a lot of underground poker games in Dallas, Texas, but I haven’t done that in years. It’s not really necessary anymore, because Choctaw and Winstar are both a short drive from the DFW Metroplex.

It did occur to me that a post about underground poker games and what they’re like throughout the world might make for an interesting blog post, though.

It’s just poker played somewhere where it’s against the law.

Laws vary dramatically from one jurisdiction to another, and enforcement also varies from place to place. At one time, most of the underground cardrooms in Dallas operated with impunity. Later, SWAT teams were breaking down the doors of such places on a weekly basis.

How the Underground Poker Scene Works (Generally)

If you’re playing in someone’s home, it’s usually legal to participate in a poker game – as long as no one’s profiting from the game besides the players. In other words, in most jurisdictions, most home poker games are legal.

But if the homeowner is charging an entry fee or taking a percentage of each pot, the laws start getting trickier. In some jurisdictions, poker businesses are just plain illegal. In others, they’re legal, but you need a license to operate such a business.

Depending on the jurisdiction, it might be legal to PLAY in an underground poker game, even if it’s illegal to host the game and profit from it. At one time, it was a misdemeanor in my area to play in such a game, but it was a felony to host the game.

Most underground cardroom hosts worry more about armed robbers than they do law enforcement, but that varies based on how aggressive the local police force is.

How Cardrooms Make Money

Underground cardrooms make money the same way casino poker rooms make money.

Most of the time, they charge a rake – a percentage of each pot that goes into a lockbox at the table before the pot is awarded. The standard size rake is 5% of each pot.

It’s not hard to calculate how much money a cardroom stands to make, either.

For Example:

Suppose you have a cardroom with 4 tables that operates 12 hours a night, and you have an average of 8 players at each table. Let’s assume that the average pot per hand is about $50.

If there are 30 hands being played at each table per hour, you’re looking at $1500 in pots per table, so $6000 in pots per hour.

5% of that is $300 per hour – over a 12 hour shift, you’re making $3600.

You can adjust those numbers up or down based on the stakes, number of tables, hours open, etc.

At the underground cardrooms I played at, beer was always free, and you were encourage to bring your own liquor. Most of them also offered free meals.

A business generating $3600 a day can afford to offer players such perks.

That’s not the only way to generate revenue from a cardroom, though. The host of such an establishment will also sometimes sell food and drink, especially if the games being played are low stakes.

And some cardrooms just charge a flat fee per hour per player or a cover charge to walk in the door and play.

Other cardrooms offer other casino games like blackjack, craps, or roulette. Such cardrooms might have more in common with an underground casino, though, which is a related but different business.

Underground Poker in the United States

The United States doesn’t have a blanket federal law related to poker. The laws vary by state.

In most states, though, running a cardroom for profit at least requires a license. In many states, it’s just flat-out illegal.

I’ve mentioned some of my experiences playing at the underground poker rooms in Dallas, but one city in the United States is more famous than most when it comes to underground poker:

Underground Poker in New York

In New York, you can play poker without breaking the law, even though hosting the game is illegal.

This has led to a vibrant underground poker scene in New York where some of the clubs have become famous (or infamous, depending on your point of view).

The Diamond Club and the Mayfair Club are the 2 most famous of these, but they’ve both been shut down for over 20 years.

This doesn’t mean that all poker clubs in New York are closed, though. Some of them are still open, while others closed, although at a later date than the 2 most famous ones I just mentioned.

Famous poker players spotted in underground poker clubs in New York City include Alex Rodriguez.

Most poker clubs in New York now are small so as to avoid retaliation from the lawdogs.

Underground Poker in England

Poker is only supposed to be played in casinos, but private games are allowed if they’re low stakes. They even allow poker in neighborhood pubs, although the laws maintain a complicated set of restrictions related to these games.

It’s more or less common knowledge that underground poker games happen regularly in London, but they aren’t as infamous as United States poker rooms like the ones in New York.

Underground Poker in Canada

Why Is Underground Poker Illegal Poker

As in the United States, it’s illegal to run an unlicensed gambling business in Canada – and that includes poker games. In fact, it’s a serious crime where you can face prison time.

Poker rooms are legal in Canada, but as in most of the United States, it seems to be legal in Canada to play in and host a home poker game – as long as you’re not taking a rake.

One difference between Canada and the United States is the difference in the penalties for underground poker. In the United States, such penalties are pretty consistent – at least when you’re talking about the penalties within a specific state. (Such penalties almost certainly vary from one state to another, though.)

In Canada, on the other hand, the judge over each case has a wide amount of latitude in levying penalties and handing down sentences related to underground poker.

Is Online Poker Automatically Considered “Underground” Poker?

The answer to this varies from one location to another. For example, the United States has made it clear that – at least in most states – internet poker for real money is illegal. There are 3 states that offer legalized, regulated poker games.

By definition, any poker site accepting players from one of those states that ISN’T licensed by the state authorities – like an overseas cardroom, for example – is operating an underground poker operation.

And in most states, online poker sites accepting United States players are usually run by overseas sportsbooks.

The wisdom of playing in such games for real money is questionable.

Anyone who remembers poker’s Black Friday on April 15, 2011 knows how frustrating it can be to have your money tied up in an offshore poker room and being unable to access it.

This is a possibility you face when playing online poker at a cardroom that isn’t licensed and regulated in your jurisdiction.

Molly’s Game

One of the most famous underground poker games of all time was hosted by Molly Bloom in an apartment in the Plaza Hotel in New York City. It was a private, high-stakes game that multiple celebrities participated in. Some of the names associated with her game include the Olsen twins, Ben Affleck, and Alex Rodriguez.

She was arrested in 2010 for failing to pay her taxes. She was arrested again in 2013 for money laundering and for running an illegal sports betting business. She was one of 33 people involved in this arrest.

Bloom served a year of probation and did 200 hours of community service after pleading guilty to a lesser charge.

She wrote a memoir about her experiences, titled Molly’s Game: The True Story of the 26-Year-Old Woman Behind the Most Exclusive, High-Stakes Underground Poker Game in the World.

Said book was adapted as a movie by Aaron Sorkin, who wrote the screenplay and directed. Jessica Chastain plays Molly Bloom, and Sorkin was nominated for Best Adapted Screenplay.

Why Are Underground Casinos Illegal

Conclusion

A certain type of personality is attracted to underground poker games. In fact, it’s not unusual – after all, gamblers are risk-takers by definition.

I’m not convinced that playing underground poker games is the best way to go about things, though. Living near the DFW Metroplex, I just drive to the Winstar – it’s worth the 30 minute trip for me to play in relative safety and luxury.

Your mileage may vary. Just don’t mistake the information I offer as a recommendation to break the law. I’d never suggest that you do that.

If you decide to break the law anyway, at least be careful when you’re doing so.

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