How Financing a Poker Player Works

What if you’ve got mad poker skills but do not have enough money to buy in a slot at a poker tournament?

What if you have the money but with amateur poker skills not enough to qualify for a seat at the World Series of Poker (WSOP)?

Unknown to many, several poker players have become successful thanks to the moral and financial support from their colleagues and eager investors. For instance, Scott Blumstein’s stint was only possible because his college friends contributed $60 each to finance the $10,000 buy in fee so he could have a seat at the 2017 WSOP. The 25-year old ended winning the $8.15 million grand prize. His friends got $40,750 each for supporting him. Not bad for shelling out $60 to help a friend. For Blumstein’s friends, they were all for supporting their buddy. For some, this can be a lucrative business they can get their hands in.

Staking

This practice of investing a poker player in exchange for a cut in the winnings is commonly referred to as “staking.” Over the years, it has become a growing business. In 2014, as much as 50% of the players of the WSOP were financially backed. Today, as much as 80% of the players of the tournament have financial backing.

Its success is not only evident in poker. Almost all sports that require a player to place an entry fee can have a financial backer. This includes tennis, golf, bowling, and even drone racing. The rising popularity of competitive video gaming is also now requiring financial investors since e-sports rarely get government support. Staking has even given birth to online sites that match players with an investor.

What exactly is staking? How does it work?

The Amateur Baccarat, a poker investor, is the one who puts up money on a behalf of the poker player (the horse). In exchange, the backer will get a portion of the profit should the poker player win. In agreements like this, the backer accepts the risk including the horse’s losses. However, should the horse win, the two parties share the winnings according to what was agreed upon – commonly 50/50.

Staking can be compared with buying stocks from a particular company. It is also hugely similar to horse racing. Investors put their money on something they think will perform well and have a good return of investment.

While poker staking is a lucrative business, it comes with risks. For several years, many of the deals were not deemed official and legally binding. Most were agreed through handshake deals that were unsafe for both parties. Some events may cause the deal to go south. Take for instance the case of Hal Lewis and Maurice Hawkins. Lawyer Hal Lewis financed professional poker player Maurice Hawkins but their agreement led to a lawsuit when Hawkins lost more than $22,000 in unauthorized side gambling. Hawkins played in 2017 WSOP and lost. The WSOP trending player wanted to get out of the deal but he couldn’t because he lost the money on bets that were not covered by the deal.

Instances like this make it necessary to make the staking deal legally binding, particularly when large sums of money are involved already. Online sites like YouStake provides both players and financial backers a platform on where they can enter into a safe and secure financial agreement. The said website requires the parties to sign contracts.

In the world of poker, it is common for friends to place a stake on their friend. Particularly, if they want to support their friend’s passion and they are also poker enthusiasts. Today, staking is possible or any poker fan. They can easily support a professional poker player for as low as $20.

For most poker fans, staking is more than just making good money. A good chunk of them wants to add a thrill while watching the tournaments unfold. Being a financial backer comes with the adrenaline rush similar to watching your horse run at the Japan Cup. They get an undeniable rush knowing they have a stake on that horse. The same goes for poker. When a poker fan knows that they have a piece of the poker player, they also feel the rush, especially when the player starts to go deep and deeper and might even have a chance at the million grand prize.