Portsmouth poker halls to face enforcement from prosecutor

PORTSMOUTH

In a city that has become the hot spot for Texas Hold 'em poker halls, it may be time to fold 'em.

Commonwealth's Attorney Earle C. Mobley said Thursday that he has talked to the police chief and will be prosecuting people who run poker games and other forms of gambling not sanctioned by the state.

The prosecutor said he has asked police to help identify those establishments and that letters will go out to notify owners as early as this week. At least seven establishments have operated in recent years in Portsmouth, including one in the landmark building that was once The Circle Restaurant. Four have opened this year, while another location closed in the spring.

"I recognize that there will be people that will be happy about this and people who will be disappointed," Mobley said. "I think that what I don't want to happen is for Portsmouth to become a gambling center."

Mobley said he has never said the games are legal or that he would not prosecute such operations. But he has been vocal in his belief that the law as it is written is "flawed," in that it makes an exception for "games of skill." Some argue that poker falls into that category.

Poker hall operators expressed a mix of surprise and resignation.

Charlie Daniels, who started the city's poker run when he opened The Poker Palace in 2006, guessed that a rash of new poker halls spurred the decision.

Daniels recently expanded his operation in a shopping center on Airline Boulevard, but he has a monthly lease, so he said he wouldn't have a problem shutting it down if he has to.

The newest location, ShowDown Poker, held a public showing on Monday to announce it was opening in a business park near The Poker Palace. During the event, dealers stood around tables dressed in red and black cummerbunds, suspenders and bow ties, while co-owner Frank Kelley talked about how his operation would separate itself from the crowded Portsmouth scene with excellent service.

Kelley and co-owner Charles Jordan said they planned to pay out jackpot prizes more frequently and hoped to attract business owners from the Oceanfront area to come play. The two men signed a $100,000 lease for their location and invested in a security system, TVs and other equipment.

On Thursday, Kelley reacted with stretches of silence when told about Mobley's announcement. Jordan said they set up their operation only after they asked and were told that there were no active prosecutions of poker halls in the city.

"At the moment, I guess everybody's just a little stunned because it's been going on so long and his viewpoint doesn't appear to have wavered over the years, and just all of a sudden it seems that it changed today," Jordan said.

Mobley said people who invested in poker halls in Portsmouth knew it was a gamble.

Some have called, and one had an attorney write his office, seeking assurance that it was deemed legal. Mobley said he has always been clear that was not what he was saying at all.

"They certainly made a decision to go forward, and they did so at their own peril," he said.

Mobley said he has asked legislators to change the law for the past three years, without success. While he waited, the number of poker halls here grew. Prosecutors in neighboring cities were clear from the beginning they viewed them as illegal.

State Sen. Louise Lucas said she called Mobley's office Thursday to tell him she was willing to work with him to change how the law is written.

Police have never brought a case to Mobley's office, but he is aware that gambling is going on, he said. "If there's some confusion about what my position has been, I hope this clarifies it," he said.

Some council members said they supported his decision.

"It did concern me that these poker parlors were beginning to set up in Portsmouth," said Councilman Steve Heretick. "We're not Las Vegas. We're not Atlantic City."

Councilman Bill Moody Jr. said he was concerned Portsmouth was becoming a draw for poker. "I wasn't too pleased with that because like any gambling activity, unfortunately, a lot of people who participate can't afford to participate and should be doing more constructive things with their money."

The police are familiar with many, if not all, of the poker operations because off-duty officers provide security for them. One uniformed officer attended the opening at ShowDown Poker. Kelley said the officers earn $20 an hour.

At one time, the Virginia Fraternal Order of Police was raising money for its charitable foundation through tournaments.

The poker halls can bring in big business.

The Victory Lanes Booster Club, which previously operated out of the Arabia Temple downtown and now runs games at The Poker

Room II in The Circle Restaurant building, reported $426,000 in gross receipts from Hold 'em tournaments from Oct. 1, 2007, to Sept. 30, 2008, according to the nonprofit's tax returns.

The group, which also runs bingo and instant games, reported total revenues that year of $1.77 million. Neil Shull, game manager at the nonprofit's poker hall, said the majority of those revenues go back to players in winnings. The nonprofit reported $139,000 in charitable cash grants, including $50,000 to the Salvation Army and $41,000 to a youth league, according to the tax filing.

Because poker is not regulated by the state, there is typically no official oversight of the revenues.

Daniels said his poker hall has donated about $625,000 to charities in four years. Those gifts include about $18,000 two or three times a year for the HER (Help and Emergency Response) Shelter, according to Beth Cross, executive director.

"You just made my stomach drop," she said upon hearing the news. Cross said The Poker Palace gives more money than the state does to the organization for victims of domestic violence.

"It's a double-edged sword for us, because we realize anything that might spawn addictive behavior may not be good for our community," Cross said.

Janie Bryant, (757) 446-2453, janie.bryant@pilotonline.com

Dave Forster, (757) 446-2627, dave.forster@pilotonline.com