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Nonprofits upping the ante with poker contests

 

Lawmakers may seek to regulate venture

 

When the trustees of the Belknap Mill Society decided to hold a poker tournament last spring, the idea raised a few eyebrows. Some at the nonprofit, which runs an art and history center and maintains a historic mill, saw a Texas Holdem tournament as a departure from the mission. Certainly it was different from the society's traditional fundraiser, a used book sale.

But then, in a single evening of poker, the society took in twice what it can make with the four-day book sale. Goodbye, reservations. Hello, new fundraiser.

Generally, "our members are not gamblers," said Mary Boswell, executive director of the mill society, which will host another poker tournament Oct. 9. "(But) we have to make pragmatic decisions about income. . . . And this is a successful fundraiser."

To say the least. Poker tournaments have spread like milfoil, offering nonprofits a chance to capitalize on the card-playing craze and make $10,000 or more in a single day. Though gambling - including poker games played for money, even among friends - is illegal in New Hampshire, charities and other nonprofits can hold "games of chance," provided they register them with the attorney general's office and the local police. That covers everything from cow-pie bingo to ice out, where people guess what day an object will melt through the ice, according Audrey Blodgett of the state attorney general's Charitable Trust Division.

Blodgett handles all the licensing requests sent to the Charitable Trust Division. Until last year, she had never seen an application for Texas Holdem. Now, half the paperwork coming across her desk is generated by requests to hold the popular poker game. Yesterday alone, Blodgett fielded new applications from the VFW in East Rochester, the Rotary Club in Laconia and a semi-pro football team in Keene, all wanting to hold tournaments in the coming weeks.

"She's overwhelmed, I have to tell you,"said Jamie Timbas, who manages Manchester Bingo and Concord Bingo, a pair of halls that run several nights a week of charity-affiliated bingo. Six months ago, he added a Texas Holdem event in Manchester, hoping to draw on the cable TV-fueled national poker craze. Charging $100 per player (for $1,500 worth of poker chips), Timbas quickly filled 225 table seats and had to turn away 100 more.

"It's amazing," Timbas said. The now-weekly poker events in Manchester draw 1,000 players in the course of a day, between Texas Holdem entrants and those who play at open tables with $2 betting. The first 10 events grossed half a million dollars, Timbas said.

On a given night, Manchester Bingo pays out about $14,000 in prize money to the top 27 tournament finishers, with the winner claiming $5,000. Each nonprofit group is legally allowed to run 10 games of chance a year, so the organizations cycle through Timbas's hall in 10-event phases; each group takes home about $30,000 in the end, he said.

The state receives no money from games of chance, with each organization's $25 application fee going to the local city or town. That may change. With the lucrative Texas Holdem tournaments proliferating, Blodgett was asked to testify in front of a legislative committee. The Legislature will likely take up the issue of whether to create new regulations for poker in its next session, she said.

Starting Oct. 7, Timbas will add Texas Holdem tournaments to the lineup at Concord Bingo (located in Pembroke), with St. George Greek Orthodox Church of Manchester as the first scheduled organization.

The poker craze has "spawned a whole new generation of gamblers," Timbas said. The bingo players who flock to his two halls by the thousands each week are mostly women over the age of 50. The poker players, on the other hand, tend to be males in their 20s. But that's changing, he said, as more and more women get into the game.

Industry experts estimate that some 50 to 80 million Americans play poker. Though the game has been popular for ages, poker, especially the widely televised Texas Holdem version, has really taken off in the last two years, said Stanley Sludikoff, editor and publisher of the California-based Poker Player newspaper and the founder of Gambling Times, the first popular glossy publication devoted to nationwide gaming. In Texas Holdem, players are dealt two cards, held face down, that are used in combination with exposed community cards.

According to Sludikoff, the surge is a result of synchronicity. Two years ago, the Travel Channel became the first cable network to regularly broadcast poker, with its World Poker Tour. At the same time, offshore-based Internet poker sites came on the scene, giving everyone with a computer a chance to play poker and gamble, regardless of access to a casino or regular neighborhood game. And the clincher came when Chris Moneymaker emerged out of nowhere to win the 2003 World Series of Poker.

The aptly named Moneymaker scored his place in the $10,000-a-seat tournament by winning a series of online poker contests, paying only a $40 entry fee. Then, with a combination of luck and skill, the Tennessee accountant played his way past the poker professionals to win $2.5 million. "That's the rags-to-riches story, the American dream," Sludikoff said. Now, poker is broadcast on a variety of channels, from ESPN to Bravo, and entries into local and national competitions are on the rise.

Locally, Art Phillips bought into poker at just the right time. After being involved in a roulette-style casino night to benefit a Laconia nonprofit, Phillips and a partner decided to obtain the business that had lent the gaming tables. They bought Casino Game Rental in 2001, adding Texas Holdem to their offerings last year. Phillips, who kept his day job, now sets up as many as four poker tournaments in a weekend in New Hampshire and Vermont.

The nonprofits take home between $6,000 and $12,000 per event, said Phillips, who takes an undisclosed flat fee rather than a percentage of the gross. The tournaments he sets up typically draw more than 100 participants each and pay as much as $2,500 for first place. Phillips provides the tables, cards and chips as well as a dealer tutorial, but state law requires the nonprofit groups to deal the cards and run the events themselves.

Phillips will set up both the next Belknap Mill Society tournament and the David G. Poulin Charitable Fund Tournament, to be held the same day in Boscawen. Stephen Cutillo, a Belknap Mill trustee who served as a dealer in the last event, praised the tournament for bringing an excellent financial return for a one-day commitment. Plus, it was fun. But he wonders how long the poker craze will last, and whether "the goose that lays the golden egg" will be killed if every organization in the state starts running poker tournaments.

But Timbas, the bingo hall operator, said he thinks poker will continue to grow, especially as more women pick up the game. Sludikoff agreed. "There's no immediate ceiling to this thing. There's nowhere near enough tables and public card rooms to accommodate (the people who want to play)," he said. He thinks TV is the key, because the instructive commentary and card-revealing cameras bring new viewers into the game step-by-step: "I don't think we're anywhere near peaking."

 

 

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