Poker staking is a common practice in the world of professional poker, where a backer or group of backers provide funds for a player to participate in live or online poker tournaments or cash games. In return, the backer receives a percentage of the profits the player earns from playing. The following is a comprehensive explanation of how poker staking works.
Poker staking is a mutually beneficial agreement between a player and a backer. The player receives the funds needed to participate in poker games, while the backer receives a percentage of the profits earned by the player. It is important for both the poker player and backer to clearly understand the terms of the staking agreement and to communicate regularly throughout the staking process.
Finding a backer:
The player needs to find a backer who is willing to fund their poker playing. This can be done through personal connections, online forums, or staking websites that connect players and backers.
Negotiating the terms:
Once a backer is found, the player and backer will negotiate the terms of the staking agreement, including the amount of funds provided, the percentage of profits the backer will receive, and the length of the staking agreement.
Setting up a bankroll:
The backer will then provide the player with a bankroll, which is the amount of funds available for the player to use for playing poker. This bankroll will typically be kept separate from the player's personal funds to ensure that it is used solely for poker playing.
The player will then use the bankroll provided by the backer to participate in live or online poker games. The player is responsible for managing the bankroll and making decisions about which tournaments or cash games to participate in.
After each tournament or cash game, the player and backer will divide the profits according to the terms of the staking agreement. The backer will receive their share of the profits, and the remaining funds will be added back to the bankroll for the player to use for future poker games.
Repaying the backer:
In some staking agreements, the player may be required to repay the backer for the funds provided if the player does not earn sufficient profits. In other agreements, the player may be able to keep the profits earned without repaying the backer.
Ending the staking agreement:
The staking agreement will end once the player has reached the agreed-upon profit goal or the length of the agreement has been reached. The player will then have the option to continue playing poker using their own funds or to seek another backer for further staking.