A decision laid down by a High Court Judge in Auckland that tournament poker is not gambling has raised eyebrows and is being appealed by the Dept of Internal Affairs.

The judge considered that the way the promotion of the poker tournament was structured did not amount to gambling. This is because it does not involve the 'payment of consideration' based upon the outcome of the game.

Instead it involves the splitting of a sum of money derived from the payment of entry fees between the winning players. Although poker is usually associated with some form of gambling, because players in the tournament do not make side bets on the outcome of each hand, that element of wagering upon the outcome or paying consideration or a stake is not present.

If this decision is upheld then it might have consequences on the many texas hold'em tournaments that are held every week in our clubs. Theoretically texas hold'em would be treated the same as our other sporting code tournaments were participants pay an entry fee and the winners are rewarded with prize money at the end of the tournament. This form of competition doesn't come under the definition of gambling in the Gambling Act 2003.

Clubs New Zealand will be watching with interest the result of the DIA appeal.