Poker Staking in a Nutshell

Staking a player in poker can make both parties a lot of money or lose one party even more money. It's a complex relationship that can turn out great or extremely ugly. Arguments may arise on a normal basis like any working relationship. However as most people know the subject of money added into the equation can destroy friendships or turn hostile very quickly. To avoid this we need to discuss some common issues. The relationship is pretty clear cut when staking. It involves the investor/s and the player using the money to combat variance or build a bankroll to play on their own. The clear terms are: The "horse" or "stake" is the player given the money to play in the games.

The "Backer/s" or "Investors" are the people putting up the funds for the horse.

The number one point to be dealt with before any deal comes together in staking is trust. If the backer cannot trust his horse no money will ever be exchanged. If any past issues arise a stake can be sure to expect to have to explain in detail why the past issue should be overlooked or expect an immediate rejection of the stake. Stakes need to also realize they will be given a very clear cut guide to the stakes they are allowed to play. If these guidelines again are broken a stake can expect immediate removal of the stake.

Large amounts of stakes get backing because of bankroll management. The backer's can be your best eyes and ears while you are playing for them. There needs to be trust in both directions. Sometimes a stake will make 10x more money playing staked because the backer's understand what games a player should be in to be most profitable to both parties.

All backers will normal ask you questions on a daily basis; sometimes the backer may even drive you crazy with the number of questions asked. This all again stems from trust. The backers are usually looking out for their money or in many cases theirs and many others. They need to understand you are not being reckless and are performing to the best of your ability.

So, lets break down how the general idea works. The stake if first reviewed by all members of the backing team. Once the backers have decided they wish to offer a stake the player will be informed. The stake will then be given a clear definition to all games or limits they are able to play. This is the most important factor in a stake. Once the limits and games have been outlined the stake becomes liable to play those games. The stake now has a job for the backers. If the backer feels you are +EV in a game then he is going to want you to be in that game as much as possible.

This means if you are the one being staked you should expect to have a schedule. This may be as rough as you need to play X amount of games a month or as strict as you are going to play 6+ hours a day 4+ days a week.

The rate of return is sometimes negotiable. In the most common staking arrangement, profits are split 50/50 after makeup to begin the stake. Makeup works like this:

• Backers decide to stake you in $26 and under freeze outs.
• You don't cash in the first 7 so you are down $182
• In the 8th game you cash for $722
• After making up your $182 in makeup you are left with $540 to split. Your share will be $270.

Depending on the length of the stake the player can expect the split to be adjusted. It's a normal rule of thumb that the shorter the stake the smaller the players cut.

As with split percentages, there's no right or wrong approach between backers and players with regard to staking v. backing (as I've defined them).

To lastly conclude the discussion on staking we need to look at the final process of ending the stake. At times many relationships will fail, but you have to remember this is a business. If the backers decide to drop a player while in makeup that makeup is absorbed by the backers. However, if a player decides to quit while in makeup he is then responsible for all funds to the backers.

The best case scenario is always when the player is in profit and decides to give it a shot on his own. Although the backers may be upset they will still be happy with their investment. That is a staking rundown. Players will be surprised how many others are actually staked if they ask around.

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