In many jurisdictions, an unlicensed poker game may still be legal if the game is played in a residence, the 1️⃣ host does not profit, and/or the buy-in fees do not exceed a certain threshold. Even if the game itself is 1️⃣ illegal, in some jurisdictions it is not illegal to just play such a game. In such cases, only the organizers 1️⃣ of such games are civilly and/or criminally responsible. The zeal from local law enforcement agencies also varies by location. Often, 1️⃣ players and hosts of underground poker games worry more with being targeted for armed robbery than being targeted with legal 1️⃣ action.

An underground poker room usually generates revenue by collecting rake or other house fees while not being a licensed gaming 1️⃣ operator. Organized crime groups, such as the American Mafia, often host, provide protection for, or are otherwise involved in high-stakes 1️⃣ underground poker games. Underground poker venues can also generate revenue by selling food and beverages or by offering side games 1️⃣ such as blackjack or craps.

Canada [ edit ]

Under the Criminal Code, any game of poker that is not specifically licensed 1️⃣ by the relevant provincial or territorial gaming regulator is covered by either Section 201 or Section 204 of the Code. 1️⃣ Section 201(1) makes it an indictable offence for to "(keep) a common gaming house or common betting house" with a 1️⃣ maximum penalty of two years' imprisonment, while Section 201(2) makes it a summary offence to be "found, without lawful excuse, 1️⃣ in a common gaming house or common betting house" with a maximum penalty of six months' imprisonment and/or aR$5,000 fine.[1] 1️⃣ On the other hand, Section 204(1)(b) provides that "a private bet between individuals not engaged in any way in the 1️⃣ business of betting" is exempt from the provisions of Section 201, and thus is not unlawful.[2] This has been consistently 1️⃣ interpreted to mean that a poker game taking place in a dwelling house is legal in Canada, so long as 1️⃣ the host is not taking "rake" or otherwise directly profiting from hosting the game. Whether a poker game played on 1️⃣ a similar "not for profit" basis somewhere other than a dwelling house (for example, in the warehouse of a small 1️⃣ business) also enjoys the exemption of Section 204(1)(b) is disputed.

The laws governing gaming in Canada were written prior to the 1️⃣ invention of internet gaming. Notably, Section 201(2) makes no distinction with regards to whether individuals present in an illegal poker 1️⃣ room are actually playing poker, while on the other hand there has never been (as of 2013) a prosecution in 1️⃣ Canada simply for participating in Internet gaming not licensed in Canada.