New York Poker: From Backrooms to Billions in Potential Revenue
Table of Contents
- New York Poker: From Backrooms to Billions in Potential Revenue
- The Mayfair Club: A Crucible of Champions
- Beyond the Deck: The Backgammon and Gin Rummy Roots of New York Poker
- Proving Grounds: The Mayfair’s Impact on the World Series of Poker
- The Giuliani Crackdown and the Rise and Fall of Underground Clubs
- Legal Casinos and the Upstate Expansion
- The Online Poker Debate: A Billion-Dollar Question
- Sweepstakes Casinos Face Shutdown
- Where Does New York Poker Stand Today?
New York’s complex relationship with poker has evolved from clandestine games in hidden rooms to a multi-billion dollar debate over online legalization, shaped by legendary players, legal crackdowns, and shifting economic realities.
For decades, the best card players in the country honed their skills in Manhattan’s underground poker scene, operating in “basements and back rooms where the law could not easily follow.” The game spread through clubs that prioritized secrecy, attracting players who understood discretion was a condition of entry.
The Mayfair Club: A Crucible of Champions
The Mayfair Club, arguably the most influential card room in New York history, began its life around 1940 as a bridge and backgammon establishment. Recognizing a growing demand, the club transitioned to poker, eventually relocating in 1988 to a subterranean space on East 25th Street. It was here that writer and director Brian Kopelman observed the regulars, including Joe Bagels, who would later serve as inspiration for the character Joey Knish in the 1998 film Rounders.
The Mayfair’s alumni list reads like a who’s who of professional poker. Stu Ungar, Jay Heimowitz, Mickey Appleman, Howard Lederer, Jason Lester, Steve Zolotow, Paul Magriel, Dan Harrington, and Erik Seidel all spent significant time at its tables. A formative friendship blossomed between Seidel and Ungar, with the latter mentoring the younger player in strategic gameplay.
Beyond the Deck: The Backgammon and Gin Rummy Roots of New York Poker
Remarkably, many of the players who came to define New York poker arrived via other games. Erik Seidel famously dropped out of school to pursue backgammon, earning an invitation to the Mayfair Club at just 17 based on his reputation in that arena. Stu Ungar initially built his name in gin rummy circles on the Lower East Side before transitioning to hold’em. Paul Magriel was a world backgammon champion.
This pattern extended to the Mayfair itself, which initially operated as a bridge and backgammon club before embracing poker. The skills proved remarkably transferable: reading opponents, calculating odds under pressure, and managing a bankroll across extended sessions. A generation of future World Series of Poker bracelet winners first mastered these lessons in other games.
Proving Grounds: The Mayfair’s Impact on the World Series of Poker
The Mayfair’s influence reached its zenith at the 1987 World Series of Poker. Three of its regulars – Heimowitz (11th place), Appleman (8th place), Harrington (6th place), and Lederer (5th place) – all reached the final table. The following year, Erik Seidel reached the heads-up match against Johnny Chan, finishing as runner-up.
These performances were just the beginning. Seidel would go on to win 8 WSOP bracelets and remains a leading figure in the game. Dan Harrington secured the Main Event title in 1995, followed by back-to-back final table appearances in 2003 and 2004. Ungar achieved the rare feat of winning the Main Event three times, a record shared by only one other player.
The Giuliani Crackdown and the Rise and Fall of Underground Clubs
From the 1980s through the late 1990s, New York law enforcement largely tolerated the poker rooms, with establishments like the Diamond Club and the Mayfair operating relatively openly. This changed with the election of Rudy Giuliani as mayor. His administration’s “Quality of Life” campaign specifically targeted underground poker rooms, leading to increased enforcement and the eventual closure of the Mayfair in 2000.
A brief resurgence occurred between 2003 and 2007, with new poker clubs opening across the city. These operations, often located in loft spaces and accommodating 15 or more tables, adopted names like Play Station, Straddle, Diamond Club, Brooklyn Players, and the Aquarium, despite attempting to maintain a degree of secrecy. However, renewed law enforcement pressure quickly curtailed this boom.
Legal Casinos and the Upstate Expansion
In 2013, New York voters approved Proposal 1, a constitutional amendment authorizing the state legislature to approve up to seven casinos. Governor Cuomo subsequently signed the Upstate New York Gaming Economic Development Act, paving the way for four new casino resorts. Turning Stone had already opened in 1993, and Rivers Casino and Resort Schenectady followed in February 2017, offering over 1,150 slot and video poker machines, 65 table games, and a 16-table poker room featuring Texas Hold’em as the most popular game. These casinos were strategically located in areas needing economic development, deliberately excluding Manhattan.
The Online Poker Debate: A Billion-Dollar Question
The push for online poker legalization in New York has gained momentum in recent years. Senator Joseph Addabbo Jr. has introduced legislation – most recently SB 2614 on January 21, 2025 – estimating that online poker could generate approximately $1 billion in state tax revenue annually. He has cited impending budget deficits in 2026 and 2027 as a key justification for action.
Assembly Bill A6030 seeks to classify interactive poker games as games of skill, leveraging a federal court ruling in U.S. v. DiCristina that found poker to be predominantly skill-based. This distinction is crucial, as New York law currently defines games of chance differently.
Sweepstakes Casinos Face Shutdown
In June 2025, Attorney General Letitia James took action against online sweepstakes casinos, issuing cease and desist letters to 26 platforms, including Chumba, Luckyland, and Zula Casino. Governor Kathy Hochul signed Senate Bill 5935 to formally ban these sites, which utilized virtual coins redeemable for cash. An industry study estimated the New York market for sweepstakes casinos at $762 million in 2024.
Where Does New York Poker Stand Today?
New York is currently one of eight states considering online poker legislation in 2025, alongside Virginia, Massachusetts, Indiana, Maryland, Wyoming, Hawaii, and New Hampshire. The state’s constitutional restrictions on gambling remain in tension with the potential for significant tax revenue.
The underground rooms of the past are largely a memory, with the Mayfair closing its doors 25 years ago. However, the legacy of those rooms lives on through the countless bracelets won by their alumni, and the ongoing legal debate surrounding the skill versus chance element of poker continues to shape the future of the game in New York.
Featured image credit: DepositPhotos.com
