Lee's activism and business ideas have been crushed by failures in the legal arena.
Yet Lee's punishment was no more than a slap on the wrist: one year of unsupervised probation. Two co-defendants earlier pleaded guilty to reduced charges. Still, Lee's club was closed and his probation terms bar him from opening another, under threat of a prison term. Another of Lee's former associates, Christine Korza, was sentenced this month to a year of probation and an $18,433 fine. Her club, Poker Nation, which Lee helped set up and which was mentioned prominently in "Poker Wars" and in the Arizona Republic, was shut down.
Courtesy John Schnaubelt
A submitted photo from Schnaubelt shows his former club on a busy day.
New Times
John Schnaubelt, a Valley web designer and poker lover, wants to see off-reservation poker rooms legalized in Arizona.
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The 69-year-old former JP still is feisty despite his conviction. He's demanding that the federal government respond to his petition that aims to abolish the U.S. Bureau of Indian Affairs, take away the gambling monopoly from Indian reservations, and give poker lovers the right to run games and poker-related businesses wherever they want. He's written long screeds and the beginning of a book about his poker activism for his various websites.
Schnaubelt, with a wife and young twins to help support, is nearly as obsessed with Arizona's poker laws. He opened a card room in 2010 with a novel "co-op" angle to maintain the appearance of social gambling, which isn't banned under state law as long as only players benefit from games.
The business failed and closed last month. Lately, Schnaubelt has petitioned Phoenix and other cities to allow the regulation of card rooms, which he and Lee claim cities can do legally if they stand up to the state Department of Gaming. For a day job, Schnaubelt uses his computer skills for web marketing and other services. In his spare time, he threatens poker operators with citizen's arrests and informs on former competitors and partners.
Despite the wishes of Schnaubelt and Lee, the illegal status of non-tribal poker isn't going to change anytime soon. But, then, neither is the illicit poker-parlor industry itself.
A few high-profile busts of card rooms and their operators have occurred in the past three years, including Lee's, Korza's, and the Nuts Card Room's in Goodyear, raided last December. The enforcement actions occurred under Mark Brnovich, appointed director of the Arizona Gaming Department by Governor Jan Brewer in 2009.
Though Brnovich vowed he would wage war on off-reservation poker rooms in the state, authorities continue to have a lackadaisical attitude toward the establishments. The 16 poker clubs that the Gaming Department estimates do business in the Valley seem to exist in peace. Complaints about the rooms have decreased. They're not a law-enforcement priority — and, indeed, police face no shortage of more serious crimes to investigate.
A worker at one northwest Phoenix poker room says patrons enjoy the establishment because it's entertaining and closer than driving to Indian casinos.
"We get to know people, their style of playing — it's a lot of fun," she says.
She admits that she can only hope authorities continue to look the other way.
As long as no one makes a fuss, poker enthusiasts can get their fix, a few entrepreneurs can make money, and almost everyone's happy.
Schnaubelt and Lee, of course, plan to keep raising a ruckus.
Three years ago, Lee acted as though he held a royal flush, boasting far and wide that he was eager to take on the authorities in court.
"If they have to toss this old grandpa into the slammer before we get to make our point, fine with me," Lee blustered back then.
The state called his bluff.
A former Navy enlisted man, Lee used to be known as the "the rock 'n' roll judge" because he liked to play rock music in his chambers while serving as a JP for Maricopa County's Northeast Phoenix Justice Court. He took office in 1973, serving three four-year terms. Over that time, his libertarian views evolved, and he railed publicly against victimless crimes such as marijuana possession.
"I was surprised I got re-elected the first time and stunned the second time," he says.
Before life as a JP, he had obtained a marketing degree from Arizona State University. After his time in office, he founded several "network marketing" businesses, though he "never got filthy rich like some of my friends."
Lee had a lifelong interest in poker and came up with an idea in 2005 to form a card players' association that would issue charters and business plans for off-reservation poker rooms. He convinced others that his plan was legal, and several poker rooms were launched by various owners under his tutelage. Lee claimed three years ago that he collected up to 15 percent of profits from the rooms' owners (something he now denies).
Lee ran a Sierra Vista card room that was investigated by officials who determined it was illegal and recommended felony charges against him, but then-Attorney General Terry Goddard declined to prosecute based on a "lack of resources."
The former JP took that as a green light to expand his operations, causing Goddard to revisit the issue.
State gaming agents raided a poker room affiliated with Lee's International Card and Game Player's Association, the Club Royale in Tucson, in December 2008, a few months after it opened. Undercover Department of Gaming agents spent many hours and hundreds of dollars at the club playing Texas Hold'em, and they later reported that the place sometimes brought in thousands of dollars a day.