Decision in South Carolina: Poker is a Game of Skill
In a ruling handed down in a South Carolina court room on Thursday, it was revealed that Texas Hold’em is a game of skill. Although it may seem like a positive ruling for poker by Judge Larry Duffy, the five defendants in the case were ultimately found guilty due to a lack of explanation as to what defines “gambling” under the state’s law. It is the first setback for the Poker Players Alliance (PPA), which helped spearhead the South Carolina case by bringing in World Poker Tour Host Mike Sexton and Statistics Professor Robert Hannum to testify before the Judge. The five defendants are likely to appeal.
Sexton was paid $5,000 by the PPA to appear in South Carolina. Judge Duffy noted that Sexton’s testimony helped him understand that poker “is a game where the average player can become a better and better player… It is a skill that can and is developed.” Sexton expounded on the art of betting, raising, and calling as well as the mathematics behind the game. The latter was discussed in detail by Hannum, an instructor at the University of Denver. Hannum noted that in a study which examined 103 million Texas Hold’em hands, 76% did not go to showdown. Therefore, skill makes up a considerable part of the game.
The issue of guilt or innocence focused on whether determining that poker is a game of skill made the defendant’s actions, illegal gambling, acceptable under South Carolina law. Judge Duffy elaborated, “There are no clear guidelines for this Court to follow. Each challenge to a particular gaming problem has been decided without the Supreme Court or the Legislature explicitly and precisely defining gambling or gambling house – key factors in the determination of this case.” Nate Stallings, a renter in the home where the game was broken up, advertised on the internet and charged $20 that was used for food and drink. Stallings is not part of the defense; rather, he pled guilty two years ago to operating a gaming house and paid $747.50.
Lead attorney Jeff Phillips commented in a press release distributed by the PPA, “While I am disappointed that the Judge found my clients guilty by holding them to a standard that is not defined by the law, there are many positive elements that we can take from this opinion as we prepare for the appeal.” No timeline has been given for the appeal. The PPA contends that the South Carolina Supreme Court and Attorney General agree that the “Predominance Test” should be used. The defendants’ guilt carries a fine.
Judge Duffy concluded that Texas Hold’em is resoundingly a game of skill in a ruling that will likely be used by the PPA in legal battles elsewhere in the United States. He remarked, “This Court, based on the above stated facts, finds that Texas Hold’em is a game of skill. The evidence and studies are overwhelming that this is so.” Judge Duffy added that if South Carolina used the “Predominate Factor” test (and thus employed the skill game argument to conclude poker is legal), “the decision would be simple. But it is not.”
PPA Executive Director John Pappas described the importance of Judge Duffy’s decision coupled with other positive state rulings in Pennsylvania, Colorado, and Kentucky: “The positive language in this ruling comes on heels of other key legal victories for the rights of poker players in Kentucky, Colorado, and Pennsylvania. It’s becoming quite clear the legal community agrees that this great American pastime is a game of predominant skill, not luck, and should not be considered gambling under the law.”
In Kentucky, the PPA is set to file an amicus with the State Supreme Court involving the seizure and potential forfeiture of 141 internet gambling domain names. In that trial, the Interactive Media Entertainment and Gaming Association (iMEGA) and Interactive Gaming Council (IGC) have taken the lead roles. The Commonwealth of Kentucky recently asked for 30 additional pages beyond the 50 allowed in order to elaborate on whether iMEGA should have standing. Alternately, the State requested 10 days to shorten its brief.
The legal battles at the state level were brought on by virtue of the PPA’s Litigation Network. Open to dues-paying members of the organization, the Litigation Network connects poker players seeking legal counsel with qualified attorneys in their area. Moreover, it allows the PPA to become involved, such was the case in South Carolina, where its efforts were largely successful despite the guilty determination.
Read Judge Larry Duffy’s Mount Pleasant poker decision. Stay tuned to PocketFives.com for more information.
