The REGISTER
University of Iowa freshman Lindsey Negaard was drawn to the online poker tournament by the free entry and thousands of dollars' worth of prizes.
"I really like to play poker," said Negaard , 19, of Bettendorf. "It's hard to find places to play on campus because it's not allowed in the dorms. It's also hard to play without putting a large sum of money down."
But Negaard, who is scheduled to play in the tournament for the first time today
More than 200 Iowa college students are competing in the 2005 College Poker Championship, an international online Texas Hold'em poker tournament that state regulators say is against the law.
"Internet gambling in Iowa is illegal," said David Werning , spokesman for the Iowa Department of Inspections and Appeals, which regulates social and charitable gambling. "It doesn't matter what form it takes."
The situation represents the legal trouble that Iowans risk when playing Texas Hold'em, a card game made increasingly popular by cable television coverage of tournaments.
Small home poker games among friends that are not on school property, do not have entry fees, and have winnings only up to $50 in a 24-hour period are considered "social gambling" and are legal in Iowa. But games with winnings that exceed $50 and online poker games are illegal.
Those who violate the state's social gambling laws can be charged with a serious misdemeanor, punishable by up to a year in jail and a fine of up to $1,500.
Most violations escape prosecution. State officials said they could not recall any charges filed against those violating the law by playing poker. They said prosecutors usually spend their time on more major offenses such as bookmaking or cheating at casinos.
The 2005 College Poker Championship was one of many inspired by the growing popularity of Texas Hold'em nationwide. It's played online every Sunday afternoon and runs through May 22.
About 20,000 college students from across the nation and Europe are competing for a share of the $135,000 prize pool, which includes a $41,000 scholarship to the overall champion and a $1,000 donation to charity for the top 10 finalists.
The players include 239 students from Iowa, including those from the University of Iowa, Iowa State University, Drake University, University of Northern Iowa, North Iowa Area Community College, Luther College, Grinnell College, St. Ambrose University and Iowa Lakes Community College.
Tournament host Lou Krieger disputes that the online poker tournament is illegal, especially since there's no money changing hands.
"The College Poker Championship really isn't about gambling," said Krieger, a professional poker player who also hosts the online poker site Royal Vegas Poker and is the author of seven books about poker. "There's no money to be lost. There isn't a risk." Royal Vegas Poker is providing the prizes.
Werning of the inspections department disagreed. He said last week that he would be referring the online poker tournament to the Iowa Division of Criminal Investigation.
"They're giving $135,000 of cash scholarships. There is a benefit," Werning said. "There certainly is a prize. There is consideration. To wager doesn't necessarily mean you have to have a financial obligation."
State fact sheet includes warning
The question of legality surrounding Texas Hold'em is such a hot topic that the inspections department has developed a special fact sheet. It warns: "Despite its popularity and the increased frequency with which tournaments are being held around the country, Texas Hold'em and similar poker tournaments may not be legal in the state of Iowa."
Iowa universities have legally sponsored intramural poker tournaments under a special license from the state, but most Greek houses and student groups are not allowed to do so.
"There are tons of student organizations that have wanted to hold their own tournaments," said Linda Marticke, intramural coordinator at Iowa State, where there have been three intramural Texas Hold'em tournaments since December 2003. "As far as I'm told, it's against the law."
Laura Bestler-Wilcox, ISU's assistant director of student activities , said Iowa State has also discouraged formation of a campus poker club.
"We can't control whether it's social gambling or exchange of money," she said. "It wouldn't be in the best interest of the university to recognize an organization that promotes gambling."
College students generally seem to be aware of the legal questions.
Negaard, the U of I student, said: "You're not allowed to play cash games in the dorms because it's considered underage gambling." However, she acknowledges: "I'm sure playing goes on in the dorms."
ISU freshman John Misra, 19, of Ames in January won the university's intramural Texas Hold'em tournament, which was sanctioned by the university and paid for with student fees. He and the other nine top finishers won T-shirts.
"Since it wasn't for money or anything, it was pretty relaxed," Misra said. "It was just the pride of being the winner of the intramural championship."
But Misra said he also plays in home poker games for money about once a month. Other students on campus play three or four times a week. He acknowledged state limits on the winnings for home poker games, but said that limit is often violated.
"Legally, they run only up to $50, but I know of games where it goes higher than that," Misra said. "Pots can get about $100 or $90 for first place."
"They're nearly impossible to regulate"
Werning said the Texas Hold'em craze is difficult to regulate. The department has advised some groups that it's not a good idea to hold such a poker tournament.
When the law is violated, the department has the power only to make referrals to local law enforcement or to the state DCI. Many other illegal poker games across the state go unnoticed.
"If we're not aware of it, we can't regulate it," said Werning, who said he didn't know about the online 2005 College Poker Championship until last week. "They're nearly impossible to regulate. The best they can do is get hold of them and advise them in the state of Iowa, online gambling is illegal."
Iowa law generally requires people to be 21 years old to gamble. But the law has exceptions, such as when a charitable organization holds a poker tournament. In that case, the group is allowed to establish its own age limits by house rule or policy of the organization, Werning said.
ISU sophomore William "Joe" Klein of Clive said there's always a Wednesday night and Saturday afternoon poker tournament on the third floor of his dormitory, Friley Hall. The buy-in is small - $2 or $5. He said his biggest win was $35 and the games are "just more for fun."
But ISU freshman Brian Thurber of Chicago said 40 people played in Wednesday's tournament and the winner took home $200. Negaard said she also knows people at the U of I who lose hundreds of dollars in one night.
Gambling by college students worries Tom Coates, director of Consumer Credit of Des Moines and vice president of the Truth About Gambling Foundation. He said those who gamble at an early age are at least twice as likely to become problem gamblers as those who don't gamble as young people.
"You have to be 21 to gamble. You sure don't have to be online. All you have to have is a credit card," Coates said. "With a line of credit, you can gamble any time of the day or night. Young people at an early age can gamble real dollars, not just some T-shirt prize."
Coates also criticized Iowa universities that have held intramural Texas Hold'em tournaments. "By endorsing the activity, the colleges or the charities or whoever is putting it together is showing an endorsement of the activity," he said.
Life lessons learned- and some are painful
Tahira Hira , an ISU professor of consumer economics and family finance, in 1996 surveyed 797 ISU students about gambling. Her survey found that 52 percent of students said they gambled. Games they played ranged from the lottery to sports betting, poker, video games, casino games and horse racing.
Hira said she has lots of horror stories to tell about gambling among college students. Some students told Hira that it starts as fun, but soon people can't quit.
"I've done lots of research, and this has been the one that's been most heart-wrenching for me," said Hira, who is an assistant to ISU President Gregory Geoffroy. "There are students who have dropped out of classes because they got themselves into gambling."
But Krieger, the host of the 2005 College Poker Championship, said only "a very small number" of people have a problem.
He instead likes to talk about the growth of college poker clubs and what he described as benefits of the game - learning how to deal with people, learning how to negotiate and making decisions with limited information.
"Universities are obviously starting to see poker as something that can be used for lessons in real life," Krieger said. "Lessons of poker and the lessons of life are very similar."
