Nonprofit Poker Surge Called "Crazy" by Some

Would it surprise you to know there are card rooms in your community where high school seniors can bet hundreds of dollars on "Texas Hold-Em" poker? What if I told you these rooms were licensed by the state of Michigan and sponsored by community nonprofits, such as Rotary clubs, high school booster clubs, elementary schools and local chambers of commerce?

The nonprofits are critical players in the process because they sanitize the money that is lost by the gambler. They cloak formerly illegal gambling activities in the guise of "charity." They cash in on the poker phenomenon that is sweeping the nation.

Michigan licenses Texas Hold-Em games in bars, bowling alleys and dedicated card rooms across the state. The owner of the building charges rent for use of the room, and a private company operates the poker room.

Nonprofits make their money from the "rake," a set amount from each pot over the course of the night. The nonprofit can sell only $15,000 in chips to the players on any given night, but some card rooms have as many as three nonprofits selling up to $45,000 chips each night.

For the complete story, and comments, please see Michael Burke, Michael Burke: Poker surge is crazy
, Lansing State Journal, November 2, 2008.