Quick facts by PokerStrategy
- In poker staking, the stakee or backee refers to the player sponsored by an organization or an individual staker to engage in tournaments or cash games.
- Enables proficient players to play without their own bankroll, sharing the profit with the staker based on specific agreements made between them.
- The components include makeup, stakeback, profit divisions, and other contractual arrangements.
- Stakees avoid upfront costs but give up a portion of winnings and must follow the staking agreement terms.
What Is a Stakee/Backee in Poker?
When discussing what a stakee/backee is in poker, both terms refer to the funded player in a staking arrangement. The stakee in poker receives bankroll or tournament buy-ins from a staker or backer in exchange for a share of profits.
Poker stakee and poker backee mean the same thing in poker staking terms. “Stakee” tends to be more common in formal agreements, while “backee” is often used informally among players.
In simple terms, stakee poker is defined as an arrangement where a player competes using someone else’s money under specific profit-sharing and performance conditions.
How Staking Works
Poker staking explained in a nutshell: Staking is essentially a partnership where the staker supplies capital, and the stakee supplies skill and time spent at the tables.
Basic process includes:
- Negotiation: Parties agree on buy-ins, profit splits, makeup clauses, stakeback rules, game selection, and deal duration.
- Funding: The staker provides bankroll for cash game play or tournament entries.
- Play: The stakee uses the provided funds to compete.
- Settlement: Profits are shared according to the contract agreed; losses may be logged as makeup.
Understanding how poker staking works is critical: agreements should always be documented to avoid disputes, especially in ongoing or high-value deals.
Understanding Makeup and Stakeback
Staking can get very complicated, especially when a player is playing high volume or high stakes. There are certain nuances that must be considered before becoming a backer or a backee.
Makeup
In staking, makeup refers to the total of a stakee’s accumulated losses that must be repaid from winnings before any profit is split. Typically, a player will not owe this deficit back from anything other than poker winnings and will not be able to leave the deal in makeup, especially if they plan to continue playing poker (this will vary according to specific contracts).
Example: If a stakee is down $6,000 on a staking deal, and then wins $10,000, the first $6,000 goes to the staker to clear the makeup. The remaining $4,000 is split according to the agreement.
Purpose: This protects the staker from variance and allows the stakee to continue playing through downswings without repaying out of pocket.
Stakeback
Stakeback means returning the initial buy-in before splitting profits. Unlike makeup, it applies only to that one tournament or session.
Example: In a $2,000 buy-in with an $8,000 cash, the $2,000 stakeback is paid to the staker first, then the remaining $6,000 is split.
Poker staking agreements explained: such agreements can vary greatly, but the terms must be clear to both parties as they shape how and when a stakee gets paid, as well as how a staker benefits and profits.
Why Players Become Stakees
The benefits of being a stakee in poker can be significant:
- Access to Bigger Games: Play high buy-in tournaments or large cash games without risking personal funds.
- Variance Control: Staking shifts the financial risk to the staker, reducing the stakee’s exposure to swings.
- Career Development: Allows players to gain experience and visibility on major poker tours.
- Performance Focus: Without bankroll stress, players can make better, less emotionally driven decisions.
Some players only use staking for large events, while others rely on it for their entire poker schedule.
Poker Staking Sites
These are the most common poker staking sites, where fans can back their favorite players or explore new ways to generate returns on poker investments.
StakeKings
One of the largest staking exchanges for online poker. It allows users to buy and sell action on poker players, often with real‑time listings for upcoming tournaments.
PokerStake
A dedicated staking marketplace that provides live listings of players offering tournament stakes. It often features high‑profile pros and upcoming events.
Stakee’s Responsibilities and Risks
The responsibilities of a poker stakee include:
- Playing only approved stakes, formats, and events.
- Keeping honest, accurate records of all results.
- Acting professionally at the table and in public.
- Avoiding any breach of poker rules, including collusion.
Risks for the stakee include:
- Reduced Share of Winnings: Always less than if self-funded.
- Extended Makeup Periods: A long losing streak can delay the chance of a payout for months or even years.
- Contract Restrictions: Some deals prevent the stakee from playing independently in certain events or stakes, or from leaving the deal whilst in makeup unless there are major extenuating circumstances.
Real-World Poker Staking Examples
- Tournament Series Deal: A staker funds a player for all WSOP events, covering every buy-in in exchange for 50% of net profits after makeup.
- Cash Game Backing: A stakee is bankrolled for $25/$50 No Limit Texas Hold’em games, settling profits and losses after each session.
- Single Event Backing: A one-off arrangement where a player sells a share of their action for a single tournament, often without makeup obligations.
Famous Players Who Use Staking
Among more well-known poker figures, Phil Hellmuth has most actively sought financial backing to participate in poker tournaments. He has regularly sold a percentage of his action with markup. Markup is a premium placed upon a percentage sold to others, considering a player’s skill level and reputation.
Additionally, Daniel Negreanu also engages in staking arrangements, albeit to a lesser extent. In contrast, Phil Ivey typically backs others, but rarely receives significant backing himself.
Common Staking Terms
- Staker/Backer: Person or entity providing funds.
- Stakee/Backee: Funded player.
- Makeup: Losses owed to the staker before profit sharing.
- Stakeback: Return of the buy-in before splitting profits.
- Profit Split: The agreed percentage division of net winnings.
- Markup: An additional charge on sold tournament shares (e.g., 1.2 = 20% markup).
- Duration: Whether for an individual event, a series, or recurring.
A clear grasp of these poker staking phrases prevents misunderstandings and keeps both individuals on the same page.
Sample Staking Agreement Breakdown
A typical poker staking agreement for a tournament might include:
- Buy-In: $5,000 paid by the staker.
- Profit Split: 60% staker, 40% stakee, after makeup.
- Makeup Clause: Yes, applies across the full tournament series.
- Duration: 10 tournaments in June and July.
- Restrictions: The stakee cannot sell the action to third parties without approval.
Example Outcome:
Winning case:
- Player cashes $25,000
- $5,000 stakeback returned
- Remaining $20,000 split → $12,000 to staker, $8,000 to stakee
Losing case:
- Player bricks all events.
- Staker loses $5,000 total.
- Stakee owes nothing out-of-pocketbut enters $5,000 makeup for future deals.
This kind of transparency ensures that both sides understand how poker staking works before play begins.
Impact of Staking on Modern Poker
Staking has reshaped the competitive poker environment:
- Many elite players have private stakers covering their entire annual schedule.
- Online poker rooms now facilitate staking deals between players who have never met in person.
- High buy-in events have more diverse player pools because staking removes the financial barrier.
Without staking, many skilled but underfunded players would never have the chance to compete at poker’s highest levels.
Frequently Asked Questions
What is the difference between a stakee and a backee?
There is no difference between a stakee and a backee; both refer to the funded player in a staking arrangement.
Why would a player choose to become a stakee?
A player might choose to get staking to access higher-stakes games, reduce personal financial risk, or gain valuable tournament experience.
Can a stakee end a staking agreement at any time?
Whether a player can end a staking agreement as the stakee depends on the terms of the contract. Some allow early termination, while others require clearing makeup or completing the agreed schedule first.
How common is staking in professional poker?
Staking is a common practice in professional poker, particularly in large tournaments and high-stakes cash games. Even top pros often sell action or work with backers.