The Texas Attorney General has finally weighed in and concluded that bars cannot hold (cash entry fee) poker tournaments without violating Chapter 47 of the Penal Code.
You're right. The opinion contains essentially 2 conclusions:
1. Bar tournaments are illegal if money is wagered.
2. Bars may host a poker tournament in which participants do not risk money or any other thing of value for the opportunity to win a prize. (i.e. if you play for free and accumulate points to win a prize). So long as no money is wagered, this is okay.
Random thoughts from a lawyer, an accountant, a commodities trader, an ex-Marine and a WSOP Main Event money finisher that don't know as much as they wish they did...