The Division of Liquor Control, which I believe is part of the Dept. I'm not sure about Texas, but I've seen gambling issues come up here in mid-MO before. Knowing my friend, the other player probably had no chance.
The local judge threw out the case ruling that pool is a game of skill, not chance. The cops did the bust because a lot of drugs and other stuff were going on the hall (Blue Cue, Telegraph Avenue, Berkeley), not because they had anything specific against two-player wagering.
In the 1960's a friend of mine got busted for wagering on himself in a pool game. It's very clear to me that I am not a lawyer. One part seems to say holding bets on a pool game is illegal, while another says that a contest of skill is not covered. I couldn't find a direct reference to billiards, so I'll guess it's not mentioned specifically. I tried to read over the law for California, but there sure are a lot of words there. You had to go outside the city limits to find a cash tournament, and I'm not sure where for a joint. This was in the same era when you could get 25 years for marijuana possession. Click to expand.When I lived in San Antonio, it was illegal for a pool tournament to offer cash prizes.