Gambling is illegal in Texas.

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But poker clubs across the state are using a loophole to their advantage.

In North Texas, several business owners have tried their hand at the idea, and lost.

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“Everything was absolutely perfect,” said Jody Wheeler, co-owner of FTN Poker in McKinney.

Since opening September 15, he says poker players have lined up for seats at the tables. Now, chairs around those tables sit empty.

“I feel heartbroken,” he said. “I really tried to start a successful business and couldn't do it.'

Wheeler folded Monday after learning from McKinney police he could face charges for operating illegally.

“They simply asked me that I shut down voluntarily,” Wheeler explained.

FTN Poker isn't alone.

Poker Rooms of Texas in Plano, which opened earlier this year, is also closed.

The reason comes down to how the law is interpreted.

“We set it up just like if you were at a country club,” Wheeler said.

Texas's gambling law says only bet winners -- not businesses -- can benefit economically from gambling.

Wheeler insists he wasn't saying his money came from a fee charged at the door.

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“I still believe that today that we were operating within the law,” he said.

With hundreds of thousands of dollars already invested, he says a legal challenge was too much to take on.

He’s now trying to sublet the property and sell tens of thousands of dollars of equipment.

“I am going to look for ways to get involved at a state level because I believe that's our only step,” he said.

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An official with the Texas Attorney General's Office acknowledged they've had discussions about private poker clubs, but stopped short of saying whether they're legal or illegal.

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Instead, they highlighted state statute and the requirements it lays out for allowable gambling.