Derek Kelly, the chairman of the Gutshot Poker Club in Clerkenwell, Central London, has been found guilty of contravening the Gaming Act of 1968 and faces sentencing next month.

The jury at Snaresbrook Crown Court in East London took less than two hours to return a verdict, finding Kelly guilty of profiting from unlicensed gambling on his premises.

The case has been one of the most important and protracted legal wrangles in British gambling history.

The proceedings concerned two visits made by police to the club, where evidence was found that the house profited from poker activity taking place.

The court heard from the Prosecution that on 7 December 2004, a tournament offered £2,165 in winnings with the club keeping £270 as its cut.

While on the second occasion on 27 January 2005, players paid £22 to enter a game and were given £20 worth of chips, netting the club a profit of £2 per person.

The law as it stands states that a specific gaming licence must be held by anyone (such as casinos) who wishes to profit from games of chance; and The Gutshot, although a private members club, does not possess the requisite licence

The defence team were unable to convince the jury that poker is a game of skill, while the prosecution argued that poker is a game of both skill and chance, and cites the regular shuffling of the deck as evidence that the chance element is a large one.

The verdict is not only bad news for Mr.Kelly and the regulars of his club, but also for pubs and bars up and down the country who would have been able to host poker for money legitimately following a favourable ruling in this case.