With the rise in popularity of poker, police are cracking down on tournament organizers who give prizes.

Jim Sawaya does pretty good for himself at a poker table, and he has plenty of T-shirts, jackets and hats to prove it.

As a regular competitor in Texas Hold ‘Em tournaments in the Milwaukee area, the 46-year-old insurance executive from Brookfield says prize winnings mean nothing to him.

“It’s pure sense of winning,” he says.

But the prizes mean a lot to law enforcement authorities, some of whom are cracking down on poker tournaments as the card game rides a new wave of popularity in Wisconsin and elsewhere.

West Allis city officials recently shut down tournaments at two local taverns, notifying the organizers that any prize of value would render their games illegal.

Many tournament organizers throughout Wisconsin have tried to comply with state law by keeping cash off the table and enticing Texas Hold ‘Em competitors with non-cash prizes such as T-shirts, cigars and electronic toys.

“It’s not an underground casino. This is for entertainment,” said Cindy Malin of C&C Gamblers, the organizer scolded a few weeks ago in West Allis.

Malin said player participation in her tournaments has fallen dramatically since she notified the regulars that nobody could win any prize. The city, she added, even cautioned her against ranking players based on who was doing best at the tables.

“We can barely acknowledge that somebody’s a winner,” she said.

According to state law, illegal gambling is defined as any chance game in which “one stands to win or lose something of value.”

In Waukesha County, another tournament with a box of cigars at stake drew a warning from the district attorney, even though it was part of a fund-raiser for the county sheriff’s department.

Capt. Karen Ruff, a sheriff’s department spokeswoman, called the state’s gambling law confusing. But the yearly fund-raiser tournament at a local country club no longer offers any sort of prize, she said.

“We just want to make sure that we’re not doing anything wrong,” she said.

When the current poker craze began with the emergence of Texas Hold ‘Em games on cable TV, police agencies in the Milwaukee area vowed to keep a close watch for illegal gambling. Some even sent out warnings to tavern owners and others.

Texas Hold ‘Em tournaments, however, remain hugely popular in the area, and they are perfectly legal as long as competitors are playing for nothing more than bragging rights.

“These games are not uncommon, and occur throughout the state,” said Kevin St. John, a spokesman for the Wisconsin attorney general’s office.

Typically, a tavern or other private establishment agrees to host a tournament and pays the organizer a fee based on how many competitors show up. Using that money to purchase prizes for the winners, the organizer then encourages players to patronize the tavern with food and drink purchases while the games are going on.

A tournament typically continues for several weeks, so the host establishment can sometimes enjoy a significant boost in business.

Badger Poker Tournaments, which conducts games at several locations in the Milwaukee area, is planning a championship on Saturday with a free trip to Las Vegas for the big winner.

Badger Poker organizer Jason Growel said the prize will be awarded in Las Vegas in an effort to avoid violating any laws in Wisconsin. Growel called gambling restrictions here vague and confusing, saying that he was unaware until recently that there might be a prohibition on any sort of prize.

“Until there’s a law saying ‘You can’t do this’ or ‘You can’t do that,’ we’re going to still do what we do,” he said.

Drawing as many as 80 people a night, Badger Poker organizes tournaments at taverns in Milwaukee, Waukesha, West Allis and elsewhere.
Enforcement is sporadic

With the state attorney general counting on local police departments to sniff out illegal tournaments, enforcement has been spotty, at best.

John Roth, an organizer of a tournament called Phatguyz Poker, was rebuffed two years ago when he tried to start a game at a private club in Sun Prairie. Club officials sought out the state attorney general’s office and were warned that Roth’s offer of $50 gift certificates to tournament winners would be illegal.

Roth ended up finding a host down the road at a Dodge County supper club, where he draws crowds of 25 to 30 people a night.

“I’m not standing here saying it’s legal,” he said. “It’s just something we enjoy. And I don’t see that anyone gets hurt.”

Dodge County Sheriff Todd Nehls said he lacks enough manpower to keep track of 15 or so establishments where he believes Texas Hold ‘Em tournaments are held regularly.

Nehls said he has notified organizers that he will not shut them down as long as they keep the stakes low, which he estimated at $20 a person for a seat at the table.

“It’s a balancing act,” he said. “It’s illegal, but it’s reasonable.”

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Author Contact Info: Scott Williams, Milwaukee Journal Sentinel