Poker staking is simply putting cash up on behalf of a certain poker player hoping that the player will win. So, you will be known as the backer because you are using your own money. While the poker player you are backing is called the horse.
Poker staking is becoming very popular at AU casino websites. That why we decided to compile this guide. We are going to discuss all there is to know about online poker staking. For example, you will find the best poker staking sites and the benefits of this activity.
As we have mentioned before, poker staking is sponsoring a poker player for their game. The person who has the money is called the backer, while the poker player you sponsor is referred to as the horse or stakee.
You can think of online poker staking as an investment because you can negotiate with your horse on winning. In other words, you can discuss how much you will receive when the horse wins. At high-profile poker tournaments, you can walk away with a lot of money.
In most cases, the split between the backer and the horse is quite high. It can even be as high as 50% or higher. The percentage is high because the backer is taking on all the risks. Sometimes the risk can be quite significant because some tournaments require AU$10 000 buy-ins.
These days, the horse and the backer will most likely have a general rule: the percentage of winnings should be equal to half the percentage of cash put up. For example, if you put up 100% of the money, you will get 50% of the winnings. However, if you get 50% of the money, you will get 25% of the winnings.
Plus, the horse needs to pay the backer back the money he/she put up in full in addition to the winnings.
How Does Poker Staking Work?
Both the backer and the horse need to discuss the terms and conditions of the poker staking game. The terms and conditions vary between the backer and the horse, but there are some general terms that most people go by. These terms include:
The type of stakes the horse is allowed to play. For example, micro, low, mid or high stakes.
What format of poker game the horse/player is allowed to play?
The horse is allowed to participate in tournaments, like the World Series Online Poker (WSOP).
Will turbos and hyper-turbos be allowed?
Can the player participate in the satellite tournaments?
If the horse wins the satellite tournament, can it go on to participate in the target tournament?
Which online poker staking sites is the horse allowed to participate in?
How many hours should the stakee commit to playing poker?
Are there any poker coaching sessions that need to be attended?
How often are the profits going to be split? These are also known as profit chops.
How long is the agreement going to last?
Types of Poker Staking Agreements
One-Time Poker Staking Agreement
These agreements are very popular in poker tournaments, and they are only valid for as long as the tournaments last. However, sometimes these agreements can be long-term, but that only applies to poker cash games.
Package Poker Staking Agreements
As the name suggests, these agreements involved a certain number of tournaments as a package deal. That means that the player and the backer will have a deal that spans across several tournaments. However, this type of poker staking is not very common in online poker spaces.
These poker staking agreements are not that popular because backers don’t like putting up money for a bundle of games. There is too much risk to incur on their side. Backers don’t see it as profitable unless they agree on certain things.
Long-term Poker Staking Agreements
Long-term poker staking agreements are quite popular, and many backers choose these instead of others. These agreements last between 1 to 2 years.
Long-term poker staking agreements are quite common because there is a high risk when you back a poker player. The high risk involved is due to the variance in poker. This is why many stakers like to draw up longer poker staking agreements to make up for the variance.
Action Selling Poker Staking Agreement
With this agreement, you can sell some of your action to a backer. This type of agreement is also known as buy-a-piece. So, if you want to spend AU$500 on a poker cash game, you can sell a percentage of your action to cover some of the money.
Online Poker Staking: The Makeup Clause
These days all the poker staking contracts have a makeup clause. This clause makes it possible for the staking to be profitable. What the makeup clause entails is that the stakee needs to cover all the previous losses.
For example, if you lose AU$1,000 on the first day of your agreement with your backer, you will have to pay back the loss first. In the next round, if you win AU$2,000, you will first have to pay back the $1,000 loss and then split the remaining $1,000 in half between you and the backer.
There are three ways that you can get away with not paying the makeup debt, these are:
The backer can drop you before you win the next game.
You can pay the money back with your own money.
You can stop playing poker altogether.
Poker Cash Game Staking
If you’re playing an AU$1 or AU$2 limits poker game as the main game and are good at it, you can become a poker professional. Let’s suppose you would like to start playing AU$2 or AU$4 poker cash games. However, you may not feel comfortable losing a lot of your money if you have a bad losing streak. So, you may look for a backer to sponsor your games, and they can incur most of the risk.
While the AU$2 and AU$4 poker games may be tougher, going into a long-term poker staking agreement with a backer would not be a good idea. So, selling your action may be the best option for you in this scenario.
Online Poker Tournaments Staking
Poker variance is a large important part of the game in the short term. A poker player pro gets most of his/her from the big scores. These scores are worth hundreds of buy-ins. The best player in the world could go for several months without hitting the big score.