When it comes to understanding the legalities of hosting poker games, especially for groups of private individuals, it can get a bit complex, but I’ll break it down for you in simple terms.

What is "Playing for Stakes"?

“Playing for stakes” means that players are betting money or something valuable on a game with the hope of winning more money or prizes. In a poker game, this would involve players buying chips that can later be exchanged for cash or other rewards based on how well they do in the game.

How Can Private Groups Legally Play Poker?

If you and your friends want to play poker together and bet money on the game, it’s legal as long as you follow some key rules:

  1. Winner Takes Each Hand: The person who wins each hand (or game) gets all the money that was bet on that specific hand. Sometimes, the pot might be split between players if there’s a tie or if the hand rules allow for splitting the pot. However, under no circumstances should there be a rake (a portion of the pot taken by someone other than the players) or any money paid to an organizer or host of the game.

  2. The Dealer Must Play: The person dealing the cards must also be playing in the game. They can’t just deal the cards and not participate.

  3. No Outside Payments or Benefits: Only those who are playing the game can get any money or benefit from it. No one else, like a host or a venue owner, should be paid for the game or benefit in any way.

  4. No Entry Fees: You can’t charge people to join the game or to enter the place where the game is being played. This means that the game must be free to play for everyone who is participating.

By following these rules, including ensuring that the pot is only distributed among players with no rake or external payments, you can enjoy a legal and fair game of poker with friends.

What Happens if You Don’t Follow These Rules?

If any of the above conditions aren’t met, the game is considered unlawful. This could mean big trouble for anyone organizing or participating in the game. Organizers could face fines up to $11,000 or even two years in jail, while players could be fined up to $5,500 or face 12 months in jail.

Why Are These Rules Important?

The main idea behind these rules is to make sure that private poker games don’t turn into illegal gambling operations. By ensuring that no one profits unfairly and that the game remains just for fun among friends, the law aims to keep things fair and under control.

So, if you’re planning to host a poker night with friends, just make sure everyone understands these basic rules. This way, you can enjoy the game without worrying about running afoul of the law.

source: https://www.liquorandgaming.nsw.gov.au/documents/fs/fs3001-poker-tournament.pdf

House Rules

Players are allowed to straddle (place a live bet before the cards are dealt) and buy the big blind when entering the game.

Players are allowed to reveal the contents of a live hand. Please note that this is a cash game, not a tournament, so discussing hands during play is permitted.

While revealing hand contents is allowed, players should refrain from excessive table talk that could disrupt the game or provide unfair advantages. Discussing potential actions or advising other players during a hand should be avoided.

Unlike tournaments, blinds do not increase over time. The blinds remain consistent throughout the session unless players agree to change them.

Players are not required to go all-in or make any specific bets at any point. You can bet as much or as little as you wish within the table limits.

Players can rebuy chips at any time during the game whilst they are out of an active hand, provided they do not exceed the maximum buy-in limit (if one is set). There are no restrictions on when or how often you can rebuy.

Only the chips on the table at the start of the hand can be used in that hand. You cannot reach into your pocket or use any additional funds once the hand has started.

There are no time limits or clocks in cash games, allowing for a more relaxed and strategic play.

Players in the blinds (small blind and big blind) may agree to "chop" the blinds if no one else has entered the pot. This means they take back their blind bets, and the hand ends with no further action.

If a player wishes to sit out for a few hands, they may do so without penalty. However, excessive sitting out may result in being asked to leave the game.

The dealer button will continue to move around the table, even if a player chooses to sit out for a hand. If a player rejoins, they must either wait for the big blind or buy the big blind to reenter the game.

The minimum and maximum buy-ins should be clearly stated at the start of the game. Players can only join the table with an amount within these limits.

Only chips can be used for betting; cash must be converted to chips before being placed on the table.

Players are not allowed to have someone else play their stack. If a player needs to step away, they should sit out, but their stack remains in play unless they cash out.

If a player cashes out and wishes to rejoin the game later, they must buy back in for at least the same amount they cashed out with or the table minimum, whichever is higher. This prevents players from "hit and running."