1. A person is guilty of gambling if he or she:
   1. “Makes a bet on the partial or final result of a game or contest or on the performance of a participant in a game or contest;
   2. Makes a bet on the result of any political nomination, appointment, or election or on the degree of success of any nominee, appointee, or candidate; or
   3. Plays and bets for money or other thing of value at any game played with cards, dice, balls, or any other gambling device.” Tex. Penal Code Ann. § 47.02(a) (Vernon 2003).
   4. The test in Texas to determine if something constitutes gambling is “does it encourage the gambling instinct.” Callison v. State, 172 S.W.2d 772, 774 (1942).
      1. The common element of gambling is that a bet is made. Perhaps for this reason, Texas defines what a bet is in depth. Those things that are excluded from the definition of a bet must necessarily be excluded from the definition of gambling.
2. “Bet” means “an agreement to win or lose something of value solely or partially by chance. Tex. Penal Code Ann. § 47.01(1) (Vernon 2003).
3. A bet does not include:
   1. Contracts of indemnity or guaranty, or life, health, property, or accident insurance;
   2. An offer of a prize, award, or compensation to the actual contestants in a bona fide contest for the determination of skill, speed, strength, or endurance or to the owners of animals, vehicles, watercraft, or aircraft entered in a contest; or
   3. An offer of merchandise, with a value not greater than $25, made by the proprietor of a bona fide carnival contest conducted at a carnival sponsored by a nonprofit religious, fraternal, school, law enforcement, youth, agricultural, or civic group, including any nonprofit agricultural or civic group incorporated by the state before 1955, if the person to receive the merchandise from the proprietor is the person who performs the carnival contest.” Tex. Penal Code Ann. § 47.01(1) (Vernon 2003).
   4. A casino night fundraising event must fit inside the carnival gambling exception. Penal Code. Op.Atty.Gen.1992, No. DM-112.
   5. A bet may be an implied understanding that the loser shall pay for the whisky. Bachellor v. State, 10 Tex. 258, 260 (1853)
4. Thing of value “means the following:

Any benefit, but does not include an unrecorded and immediate right of replay not exchangeable for value.” Tex. Penal Code Ann. § 47.01(9) (Vernon 2003).

 
1. Bookmaking means the following:

   “To receive and record or to forward more than five bets or offers to be in a period of 24 hours; to receive and record or to forward bets or offers to be totaling more than $1,000 in a period of 24 hours; or a scheme by three or more persons to receive, record, or forward a bet or an offer to bet.” Tex. Penal Code Ann. § 47.01(2) (Vernon 2003).

2. Gambling paraphernalia means the following:

   “[A]ny book, instrument, or apparatus by means of which bets have been or may be recorded or registered; any record, ticket, certificate, bill, slip, token, writing, scratch sheet, or other means of carrying on bookmaking, wagering pools, lotteries, numbers, policy, or similar games.” Tex. Penal Code Ann. § 47.01(6) (Vernon 2003).

3. Bookmaking has four parts:
   1. “The taking or placing of a bet for another;
   2. Offering to take or place a bet for another;
   3. As an agent or employee, the aiding or encouraging another to bet or wager; and
   4. The aiding or encouraging an agent or employee to take or transmit a bet or wager.” Sassano v. State, 291 S.W.2d 323, 325 (1956).

 
1. Gambling device means:

   “[A]ny electronic, electromechanical, or mechanical contrivance not excluded under Paragraph [(C)] that for a consideration affords the player an opportunity to obtain anything of value, the award of which is determined solely or partially by chance, even though accompanied by some skill, whether or not the prize is automatically paid by the contrivance. Tex. Penal Code Ann. § 47.01(4) (Vernon 2003).

2. Gambling device includes, but is not limited to:

   Gambling device versions of bingo, keno, blackjack, lottery, roulette, video poker, or similar electronic, electromechanical, or mechanical games, or facsimiles thereof, that operate by chance or partially so, that as a result of the play or operation of the game award credits or free games, and that record the number of free games or credits so awarded and the cancellation or removal of the free games or credits. Id.

3. Gambling device does not include:

   Any electronic, electromechanical, or mechanical contrivance designed, made, and adapted solely for bona fide amusement purposes if the contrivance rewards the player exclusively with noncash merchandise prizes, toys, or novelties, or a representation of value redeemable for those items, that have a wholesale value available from a single play of the game or device of not more than 10 times the amount charged to play the game or device once or $5, whichever is less.” Id.

4. Video slot machines

   Video slot machines are gambling devices because they require no skill and players are awarded money for credits. State v. Mendel, 871 S.W.2d 906, 909 (1994).

5. Essential element of gambling device
   1. The essential element of a gambling device is that there is an element of chance, but its proportion in the equation is not relevant. State v. Gambling Device, 859 S.W.2d 519, 523 (1993).
   2. Owners of gambling devices have tried to circumvent the element of “something of value” by awarding tickets that were redeemable for cash or gift certificates. However, courts have held that this does not fall within any exception, and it is still unlawful.
      1. Machines are gambling devices even if:
         1. The owners limit the amount of the prize, and
         2. Tickets are awarded for credit that can be redeemed for gift certificates. Hardy v. State, 102 S.W.2d 123 (Supp. 2003). Gift certificates act the same as legal tender. Therefore, they do not meet any exception. Id.
      2. It does not matter if the money to play the machine is put in by the player or an attendant, or if the prizes awarded are tickets which are redeemable for cash. It is still a gambling device. Id.
      3. Winning tickets that are exchangeable to purchase another game is unlawful use of the device. Allstar Amusement v. State, 50 S.W.3d 705, 708 (2001).
6. “Treasuer Chest” is a gambling device prohibited under Tex. Penal Code Ann. § 47.06. Op.Atty.Gen.1978, No. H-1153.
7. Ticket vending computer terminals are not gambling devices. Op.Atty.Gen.1985, No. JM-368.
8. “Eight-liner” fits the definition of a gambling device. Op.Atty.Gen. 1998, No. DM-466.

 
1. A bucket shop is includes the following

   “[A]ny place of business wherein are made contracts . . . denounced by . . . [Article 8653] of this Act, and the maintenance or operation of a bucket shop at any point in this State is prohibited.” Tex. Civ. St. Ann. Art. 8654 (Vernon 2006).

2. The previous section referenced in the definition of “bucket shop” states that “future contracts” are illegal if they regard a “contract for the future sale of cotton, grain, stocks, or other commodities . . . .” Tex. Civ. St. Ann. Art. 8653 (Vernon 2006). The contract is “not made with the intention to make actual delivery, but rather with the intention of speculating on the [cotton, grain, stock, or other commodity] market. Kahn v. Harris, 151 Tex. 655, 656 (1953).

 
1. Poker / Card Games and Games using Dice
   1. A person commits the offense of gambling is he or she . . . “plays and bets for money or other thing of value at any game played with cards, dice, balls, or any other gambling device.” Tex. Penal Code Ann. § 47.02(a) (Vernon 2003).
   2. It is illegal to bet on a game that uses dice. Thompson v. State, 37 Tex. Crim. 227, 228 (1897).
    
2. Billiards, Bowling, Darts

   Not mentioned in Texas state cases, statute, or attorney general opinion.

 
1. Social Gaming
    
   1. Social gambling is not gambling when:
      1. “The actor engaged in gambling in a private place;
      2. No person received any economic benefit other than personal winnings; and
      3. Except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for all participants.” Tex. Penal Code Ann. § 47.02(b) (Vernon 2003).
   2. “A ‘casino night’ format in which no person gives or promises to give anything of value in order to participate lacks the element of consideration that is essential to the offense of gambling under this section.” Op.Atty.Gen.1986, No. JM-412.
    
2. Charity Gaming
    
   1. The Charity Raffle Enabling Act is contained in Tex. Occupations Code Ann. § 2002.001 (Vernon 2004). Tex. Occupations Code Ann. § 2002.002 (Vernon 2004) contains definitions of what constitutes a qualified organization, what constitutes a charitable purpose, and what constitutes a raffle. Tex. Occupations Code Ann. § 2002.003 (Vernon 2004) describes the qualifications of a qualified organization. It cannot distribute any income to its members, it has been in existence for 3 or more years, it does not exert a substantial amount of time trying in influence legislation, it receives a federal income tax exemption, and it has no affiliates or charters in the state.
   2. Tex. Occupations Code Ann. § 2002.051 (Vernon 2004) authorizes a qualified organization to conduct a raffle. For time and frequency restriction see Tex. Occupations Code Ann. § 2002.052 (Vernon 2004). Tex. Occupations Code Ann. § 2002.054 (Vernon 2004) governs restrictions on raffle ticket sales. Tex. Occupations Code Ann. § 2002.055 (Vernon 2004) covers ticket disclosures.
   3. The organization can only spend the proceeds of the raffle its designated charitable purposes. Tex. Occupations Code Ann. § 2002.053 (Vernon 2004). The prizes given out cannot be in the form of money. The value cannot exceed $50,000, unless it is a residential dwelling, then it cannot exceed $250,000. For further restrictions on prizes see Tex. Occupations Code Ann. § 2002.056 (Vernon 2004).
   4. A university must allow a student run qualified organization to conduct a raffle on campus. Tex. Occupations Code Ann. § 2002.057 (Vernon 2004).
    
3. Chucky Cheese Exemptions
    
   1. Tex. Penal Code Ann. § 47.01(1) (Vernon 2003) states that “an offer of merchandise, with a value not greater than $25, made by the proprietor of a bona fide carnival contest conducted at a carnival sponsored by a nonprofit religious, fraternal, school, law enforcement, youth, agricultural, or civic group, including any nonprofit agricultural or civic group incorporated by the state before 1955, if the person to receive the merchandise from the proprietor is the person who performs the carnival contest” is not a bet and therefore is not gambling.
   2. Also, Tex. Penal Code Ann. § 47.01(4) (Vernon 2003) authorizes the use of “any electronic, electromechanical, or mechanical contrivance designed, made, and adapted solely for bona fide amusement purposes if the contrivance rewards the player exclusively with noncash merchandise prizes, toys, or novelties, or a representation of value redeemable for those items, that have a wholesale value available from a single play of the game or device of not more than 10 times the amount charged to play the game or device once or $5, whichever is less.”
    
4. Commercial Gaming
    
   1. The attorney general opinions seem to indicate that where a customer makes a purchase and receives a prize, it is unlawful as a lottery. See Op.Atty.Gen.1939, No. 0-1174 (finding that it was unlawful for merchants to give away tickets to customers who made a purchase that would be entered into a drawing to win a prize); Op.Atty.Gen.1940, No. 0-2843 (stating that it is unlawful to enter those customers into a drawing if they singed the daily register). Compare with State v. Socony Mobile Oil Co., 386 S.W.2d 169, 172 (1964) (explaining that where any person could request a free bingo card with the chance to win a cash prize, no violation occurred).
    
5. Lottery
    
   1. The Texas Constitution (Article 3, § 47(e)) provides that the State can operate a lottery or contract with legal entities to operate lotteries on its behalf.
   2. A lottery is a scheme for the distribution of prizes by chance. Randle v. State, 42 Tex. 580, *2 (1875). See also City of Wink v. Griffith Amusement Co., 129 Tex. 40, 44 (Sup. 1936).
   3. A “wheel of fortune” is a lottery where the players are playing equal amounts. Barry v. State, 39 Tex. Crim. 240, 241 (1898).
   4. If a person makes a donation to a charitable organization and receives a raffle ticket for a prize drawing it is a lottery—even if people could get a ticket for free. Op.Atty.Gen.1986, No. JM-513.
    
6. Horseracing and Greyhound Racing
    
   1. The Texas Racing Act is in Tex. Civil Statutes Ann. § 179e (Vernon 2003). “The purpose of this Act is to provide for the strict regulation of horse racing and greyhound racing and the control of pari-mutuel wagering in connection with that racing.” Id.
   2. Texas defines pari-mutuel wagering as: a “form of wagering on the outcome of greyhound or horse racing in which those who wager purchase tickets of various denominations on an animal or animals and all wagers for each race are pooled and held by the racing association for distribution of the total amount, less the deductions authorized by this Act, to holders of tickets on the winning animals.” Id.
   3. To operate a pari-mutuel wagering system and engage in horse or greyhound racing, a license is needed from the Texas Racing Commission. Id. § 2.01. Its general office is in Austin, TX. Id. § 2.09. Forms and other information are available at: http://www.txrc.state.tx.us/new_agency/agency-index.html.

 
1. When multiple people, using different personal computers and modems in a private place play a game (such as a game of cards) and bet upon the outcome, it is illegal. However, when there is no “public access” to the games, the only benefit is person winnings, and the chance of winning or losing is the same for all player, it is not illegal. Op.Atty.Gen. 1995, No. DM-344.
2. A person operating a portal or other service that aids others in playing and betting on games on-line, and who charges for the service is operating an illegal service. Op.Atty.Gen. 1995, No. DM-344.

A lender cannot recover money loaned for use in a gambling game, where the lender participates and aids in the gambling. Springer v. Sahara Casinos Co., 322 S.W.2d 33, 34 (1959).

Commercial Casino Gaming in Texas occurs on Gambling Vessels. Tex. Occupations Code Ann. §§ 2003.002-2003.102 (Vernon 2004) deals with such casino gambling. Basically, gambling is permissible on casino boats as long as it complies with chapter 47 of the Penal Code. The vessels are subject to inspection by the department as well as the authority of any municipality where the vessel is docked.

 
1. Each act of betting in a gambling game is an offense. Day v. State, 27 Tex.Crim. 143, 144-45 (1889).
2. Gambling is a Class C misdemeanor. Tex. Penal Code Ann. § 47.02(d) (Vernon 2003).
3. “It is a defense to prosecution [for gambling] that the actor reasonably believed that the conduct:
   1. Was permitted under Chapter 2001, Occupations Code;
   2. Was permitted under Chapter 2002, Occupations Code;
   3. Consisted entirely of participation in the state lottery authorized by the State Lottery Act;
   4. Was permitted under the Texas Racing Act; or
   5. Consisted entirely of participation in a drawing for the opportunity to participate in a hunting, fishing, or other recreational event conducted by the Parks and Wildlife Department.” Tex. Penal Code Ann. § 47.02(c) (Vernon 2003).
4. Defense to prosecution of gambling

   “It is a defense to prosecution for [gambling] that the person played for something of value other than money using an electronic, electromechanical, or mechanical contrivance excluded from the definition of ‘gambling device.” Tex. Penal Code Ann. § 47.02(e) (Vernon 2003).

5. Gambling place and possession of gambling device

   The act of keeping a gambling place and having possession of a gambling device is intended by the legislature to be punished more harshly than the act of engaging in gambling. State v. Mendel, 871 S.W.2d 906, 909 (1994).

6. Promoting Gambling

   It is a Class A misdemeanor to “intentionally or knowingly . . .

   1. Operate[] or participate[] in the earnings of a gambling place;
   2. Engage[] in bookmaking;
   3. For gain, become[] a custodian of anything of value bet or offered to be bet;
   4. Sell[] chances on the partial or final result of or on the margin of victory in any game or contest or on the performance of any participant in any game or contest or on the result of any political nomination, appointment, or election or on the degree of success of any nominee, appointee, or candidate; or
   5. For gain, set[] up or promote[] any lottery or sell[] or offer[] to sell or knowingly possess[] for transfer, or transfer[] any card, stub, ticket, check, or other device designed to serve as evidence of participation in any lottery.” Tex. Penal Code Ann. § 47.03 (Vernon 2003).
    
7. Keeping a Gambling Place
    
   1. It is a Class A misdemeanor to “knowingly use[] or permit[] another to use as a gambling place any real estate, building, room, tent, vehicle, boat, or other property whatsoever owned by [you] or under [your] control, or rent[] or let[] any such property with a view or expectation that it be so used. Tex. Penal Code Ann. § 47.04 (Vernon 2003).
   2. Affirmative defense to this charge:
      1. “The gambling occurred in a private place;
      2. No person received any economic benefit other than personal winnings; and
      3. Except for the advantage of skill or luck, the risks of losing and the chances of winning were the same for all participants.” Id.
   3. With this section, the legislature’s purpose was to punish those responsible for using or permitting another to use a location for gambling more harshly than someone who is just gambling. State v. Taylor, 805 S.W.2d 440, 442 (1991).
   4. One does not need to own the premises to be operating gambling upon them. Shoope v. State, 118 Tex. Crim 138, 140 (1930).