Staking

Quick facts by PokerStrategy

• Poker staking is when a backer provides some or all of the buy-in amounts for a player in exchange for a percentage of the profits.
• Poker staking agreements are individual deals between the player and the backer, so they can be structured in many different ways.
• Players may owe makeup for the amount lost, which is paid to the backer using future winnings.
• It’s important to clarify exact poker staking terms to avoid any potential disputes.

What Is Staking in Poker?

Staking in poker refers to a situation in which one party, known as the “backer,” provides a poker player, often referred to as the “horse,” with money to play the game in exchange for a share of any profits.

The exact terms of a staking deal are agreed upon between the two parties. The agreement typically reduces financial risk for the player while providing the backer with an opportunity to profit without having to participate in the game.

There are many different types of staking deals in poker. A staking agreement can be verbal or written, short-term or long-term, and the way they are structured varies in terms of profit splits.

Important Poker Staking Terms Explained

In this section, we explain the most common staking terms that every player and backer shour know before entering a deal.

• Backer: A person who is funding a player to enter games in exchange for a share of any profits.
• Horse: The player who is being staked.
• Makeup: Money the player owes from previous losses before sharing new profits.
• Markup: In poker staking, markup refers to the premium that experienced players may add when selling action to reflect their winning edge. It’s possible to use a poker staking markup calculator to see how much the markup adds to the cost.
• Freeroll: A deal where the player risks no money and owes nothing if they lose because the backer is fronting the full buy-in with no markup, usually in exchange for a large percentage.
• Swap: When two or more players exchange percentages with each other to take a slice of each other’s profits.

How Does Poker Staking Work?

How staking works in poker depends on the exact terms, which will depend on the individual agreement made between the player and the backer. All aspects of the agreement should be clearly defined to avoid potential disputes later down the line.

The terms should outline how much is being staked in terms of either a cash value, an amount of time, or a selection of games. For example, a player might get staked for $1,000, or for a selection of online tournaments, or for a live series such as WSOP.

Cash game staking and tournament staking work in a similar way. In cash games, the player is given an overall amount to play with at a particular stake, and profits are split. In tournament staking, the backer pays for entries in exchange for a percentage of winnings.

The backer and the player should both keep track of buy-ins, costs, and results. If the player wins or cashes out, profits are typically split 50/50 or 60/40 in favor of the backer.

In long term staking deals, if the player loses the backer’s money, they may owe “makeup” for the amount owed. Makeup exists to make it fair for the backer and protect them from short term variance. It is not truly debt, as the player only pays back when they win at poker.

For example, if a player loses $1,000 of the backer’s money and wins a tournament for $3,000, they will pay the $1,000 back in full and then split the remaining $2,000 according to the profit split outlined in the arrangement.

Makeup deals may contain relief clauses that cancel or reduce the amount owed after a certain amount of time, and will nearly always be cancelled if the player opts out of the backing deal or stops playing poker.

Many of these staking deals happen on platforms found among the top online poker sites, where both casual and professional players seek backing.

Poker Staking Agreement

In the case of short term poker staking agreements, the deal is often verbal and made on a handshake (or digital handshake), especially if players know each other or have staked each other before.

The poker community is tight-knit, so if a backer or player is seen to commit any kind of foul play or fraud, word gets around, and it’s unlikely they will find backing deals in the future.

When it comes to longer term backing, it’s wise to have a written agreement in place that clearly outlines all of the details. Although not necessarily legally binding, this can at least be used to solve disputes if they happen further down the line.

A signed written agreement can be legally binding if it is drafted in a way that is enforceable by contract law. In reality, though, these kinds of formal contracts are very rare in the poker world and only really apply to high stakes, long term backing.

Types of Poker Staking Deals

The structure varies based on whether it’s a short-term, one-off stake or a long-term arrangement involving makeup and multiple games.

In general, though, there are a few different ways that a staking deal can be structured:

• Profit Split With Makeup: This is the most common type of staking deal for long-term backing. In this case, the backer covers 100 percent of the player’s buy-ins or stakes their entire poker bankroll in exchange for a profit split, usually 50/50.
• No Makeup Deals: Shorter term deals may involve no makeup. In this case, the backer provides a full buy-in or part of the buy-in for a profit split, and the player owes no makeup if they lose. To make up for the additional risk, the backer may be offered a greater percentage of profits.
• Selling Action: In this case, the player sells a percentage of their action to friends, other players, or backers while using their own bankroll to pay entry costs. For example, if a player is selling 50 percent in total, 20 percent could go to one backer, 10 percent to another, and so on. A markup may apply if the player is +EV.
• Group/Syndicate Backing: Several backers can pool together to collectively back a player or group of players, putting in a percentage of the buy-ins and taking a cut of the profits. This reduces the risk for the backers, but also takes an incredible amount of organization and trust between multiple parties.
• Stable Deals: In a poker stable, players are signed up to long term deals that include backing, as well as additional support in the form of coaching and, in some cases, a salary. Stables are usually run by experienced backers who take a profit split with makeup. The agreement may include commitments from the player, such as putting in a certain amount of volume every month.

Poker Staking Examples

Profit Split With Makeup:

Player A enters a long-term agreement with a backer in which they are staked to play mid-stakes live poker tournaments throughout the year. The schedule is laid out, and the total costs of events are calculated. The backer pays the full buy-ins and takes a 50/50 profit split. Player A owes makeup for any losses.

Selling Action:

Player B is an experienced player who has a long-term winning record. They have a decent bankroll for mid-stakes, but occasionally sell action for higher stakes games by posting on social media or using an online staking platform. As a profitable player with a proven track record, they sell their action at a markup in poker staking, a small premium of 10 percent to reflect their win rate.

Online Poker and Staking

Online poker staking is heavily based on trust and reputation, as well as having a provable win rate that makes it desirable for backers to invest money.

Online staking platforms make this process easy and reduce the potential for fraud. Players can post listings of the tournaments they plan to play, the percentages they are selling, and the terms of the stake, including any markup. Backers can browse the listings and decide on what action to buy.

Poker staking platforms hold the backers’ funds until the player enters the tournament. Once the tournament is over, any profits are calculated and are automatically paid out. This makes online staking much safer than it otherwise would be.

Pros and Cons of Poker Staking

Poker staking has both benefits and drawbacks for players, depending on their goals, experience level, and financial situation.

For Players

Pros:

• Lower financial risk: Backers cover the buy-ins, reducing financial pressure on the player.
• Higher stakes: Staking lets players move up without risking their own bankroll.
• Less stress: Sharing risk with a backer helps reduce pressure from variance and downswings.

Cons:

• Lower earnings: Players keep less of their winnings, as backers take a share.
• Makeup: Losses can add up, delaying future payouts until they are repaid.
• Loss of control: Backed players may need to follow rules set by their backers.

For Backers

Pros:

• Profit without playing: The main draw for backers is that they can profit without actually dedicating time and energy to playing poker.
• Top talent: They invest in skilled players with strong ROI.
• Scalable: Backers can stake multiple players and adjust their strategy based on the results.

Cons:

• High variance: Even strong players can lose in the short term.
• Trust: Without proper contracts, results can be misreported or deals broken.

Frequently Asked Questions

Can you make money on stake poker?

It’s possible to make money by staking poker players. Like all investments, though, there are inherent risks. If the player loses, the backer will absorb some or all of the financial losses.

What are the rules for stakes in poker?

Rules vary, but a good deal should outline the stake amount, games, and how profits or losses are handled.

What is the difference between staking vs backing in poker?

Staking and backing in poker both refer to the act of investing in a poker player and can be used interchangeably. Backing sometimes refers to a longer term agreement.

Can I be staked for online poker?

Yes, it’s possible to get staked for online poker games, especially if you can prove yourself to be a winning (+EV) player. There are online platforms and tools that can help you set up staking deals.