After Raid: The Lodge in Texas Lays Off Staff, Closes Indefinitely

In a moving letter emailed to employees, The Lodge Card Club in Round Rock, Texas, has announced it would “shut its doors for the foreseeable future”. Accordingly, the card room was forced to lay off all of its staff, on the grounds of ongoing legal pressure from the authorities. 

The club was initially closed on March 10, when the Texas Alcoholic Beverage Commission (TABC) completed a controversial raid during which it seized a series of alleged evidence and froze assets.

“Incredibly Difficult Decision”

Highly recognizable poker pros Doug Polk, Andrew Neeme, and Brad Owen are some of the owners of the club, which has Polk, Jake Abdalla, and Jason Levin as majority owners and Neeme and Owen as smaller investors.

In what he described as “the hardest message I’ve ever had to write”, Levin officially confirmed that the poker room would keep its doors shut and all employees would be laid off. 

“While no charges have been brought, and we maintain that the club has always operated with the utmost integrity and within the laws of Texas, the Williamson County District Attorney’s office has made clear to our attorneys that they believe The Lodge’s current business model does not comply with Texas law,” said the letter.

“For this reason, we cannot re-open. Doing so would run the risk that authorities might once again raid The Lodge, seize more cash and assets, and potentially make arrests,” Levin went on bluntly.

Levin also explained they were not given “any indication” regarding a date when the investigation could come to an end, which is why they “have no other viable path forward at this time.”

“As a result, we are forced to make the incredibly difficult decision to let our entire staff go. We hope you know just how valued each of you are, and as we hope for a favorable outcome, should we be able to once again open our doors, our plan would be to welcome you back with open arms,” Levin reassured the staff.

“You Made This Place What It Was”

“Each of you played a role in bringing that vision to life. From the front desk to the porters, dealers, managers, and production team, every detail, every interaction, every long day and late night added up to something truly special. You made this place what it was. Not the building, not the brand, you,” Levin added.

The raid, followed by the property’s closure, stemmed from the state’s gambling regulations and the “social poker club” model, which allows poker clubs to operate in a gray area by offering peer-to-peer poker games rather than standard gambling.

Instead of taking a certain percentage of the pots, these clubs have set either hourly seat rental fees or memberships.

PokerNews has, however, obtained an affidavit that alleges the now-closed club is based on a series of possible violations, including organized criminal activity, money laundering, and illegal gambling.

The document claims that roughly $1.35 million in deposits has been flagged as “suspicious”. The same occurred with a series of financial transfers between accounts tied to the business. Plus, the papers mention an undercover operation during which agents went to the club and played poker more than once.
The investigation will carry on with no clear deadline in sight. In the meantime, the Lodge’s sister location in San Antonio remains open.