Origins
There is no precise information on where or when Texas Hold 'em Poker was first played. According to legend, the earliest game played was in Robstown, Texas, in the early 1900s and it first came to Dallas, Texas in 1925.
Texas hold 'em was introduced to Las Vegas by a group of Texan gamblers and card players, including Crandell Addington, Doyle Brunson, and Amarillo Slim. Addington wrote about the history of no-limit Texas hold'em for Brunson's Super System 2.
The game was later introduced to Europe by bookmakers Terry Rogers and "The Gentleman" Liam Flood.
Rules
The descriptions below assume a familiarity with the general game play of poker, and with poker hands. For a general introduction to these topics, see Poker, Poker hand, Poker probability, and Poker jargon.
Objective
Like most variants of poker, the objective of Texas Hold 'em is to win the pot—the sum of the money bet by oneself and other players. The pot is won either at the showdown by forming the best poker hand out of up to 7 cards available, or by betting to cause other players to fold and abandon their claim to the pot.
Play of the hand
Play begins with each player being dealt two cards face down. These cards are the player's hole or pocket cards. These are the only cards each player will receive individually, and they will only (possibly) be revealed at the showdown, making Texas hold 'em a closed poker game. The hand begins with a "pre-flop" betting round, beginning with the player to the left of the big blind (or the player to the left of the dealer, if no blinds are used) and continuing clockwise.
After the pre-flop betting round, the dealer deals a burn card, followed by three face-up community cards called the flop. The flop is followed by a second betting round. This and all subsequent betting rounds begin with the player to the dealer's left and continue clockwise.
After the flop betting round ends, another card is burned, and a single community card called the turn (or fourth street) is dealt, followed by a third betting round. A final burn card is followed by a single community card called the river (or fifth street), followed by a fourth betting round and the showdown, if necessary.
Betting structures
Hold'em is normally played using small and big blind bets. Antes may be used in addition to blinds, particularly in later stages of tournament play. A dealer button is used to represent the player in the dealer position; the dealer button rotates clockwise after each hand, changing the postion of the dealer and blinds. The small blind is posted by the player to the left of the dealer and is usually equal to half of the big blind. The big blind, posted by the player to the left of the small blind, is equal to the minimum bet. In tournament poker, the blind/ante structure periodically increases as the tournament progresses. (In some cases, the small blind is some other fraction of a small bet, e.g. $10 is a common small blind when the big blind is $15. The double-blind structure described above is relatively recent; until the 1980s, a single-blind structure was most common.)
The three most common variations of hold'em are limit hold'em, no-limit hold'em and pot-limit hold'em. Limit hold'em has historically been the most popular form of hold'em found in casino live action games in the United States. In limit hold'em, bets and raises during the first two rounds of betting (pre-flop and flop) must be equal to the big blind; this amount is called the small bet. In the next two rounds of betting (turn and river), bets and raises must be equal to twice the big blind; this amount is called the big bet. No-limit hold'em is the form most commonly found in televised tournament poker and is the game played in the main event of the World Series of Poker. In no-limit hold'em, players may raise any amount over the minimum raise up to all of chips the player has at the table (called an all-in bet). In pot-limit hold'em, the maximum raise is the size of the pot.
The showdown
If a player bets and all other players fold, then the remaining player is awarded the pot and is not required to show his hole cards. If two or more players remain after the final betting round, a showdown occurs. On the showdown, each player plays the best five-card hand he can make from the seven cards comprising his two hole cards and the board (the five community cards). A player may use both of his own two hole cards, only one, or none at all, to form his final five-card hand. If the five community cards form the player's best hand, then the player is said to be playing the board and can only hope to split the pot.
If the best hand is shared by more than one player (e.g. if no player is able to beat the board), then the pot is split equally amongst all remaining players. However, it is common for players to have closely-valued, but not identically ranked hands. In particular, kickers are often needed to break ties. Nevertheless, one must be careful in determining the best hand. The goal is to make the best five-card hand; if the hand involves fewer than five cards, such as two pair or three of a kind, then kickers are used to settle ties (see the second example below.) Straights often split the pot, and multiple flushes may occur. In the case of flushes, the flush is awarded to the player with the highest flush card which completes a flush and beats the board's flush cards. If there is a flush on board, (i.e. if all the board cards are the same suit), then under cards in that suit do not play, and if no one has a card in the flush suit beating the board, then the pot is split. The sole exception to this rule is the case of a straight-flush.
The best possible hand given the five community cards is referred to as the nuts. The lowest possible nuts is three queens (this occurs with, for example, 2 3 7 8 Q on the board, with no more than two cards of any one suit).