1) To spread the risk/reward over several players of roughly equal skill.
2) To stake a player into a game/tournament that (s)he had demonstrated the skill for, but does not have the proper bankroll for.
The forum is not for begging.
I have a verifiable positive ROI of +27% over time, but I had to withdraw my entire poker bankroll to pay for my cousin's kidney surgery, and now I want $4 to try to grind my way back into my former greatness...
Really, how does that sound?
1) It sounds like a degenrate gambler playing the sympathy card.
2) This person really needs a break, and just this once...
It's easy (and self-satisfying) to have reaction #2, but the fact is that complete strangers are going to have reaction #1. Do not share your sob stories in an attempt to gain favor. Although your story may be true, your post does not fit the guidelines of the forum.
Also, ITH takes no position on the arrangements made between its members and will not get involved in any disputes that arise here. While we don't expect there to be problems of that nature, we would encourage everyone to perform appropriate due diligence in making any arrangements. Participation in a staking event by an employee/contractor/principal of ITH does not change this provision.
What is staking, and why is it used?
Staking has been going on as long as poker has been played. Sometimes it is used to prop up a player who is down on his luck, suffering from variance. Sometimes it is used to put a proven player into an event or game that their bankroll normally wouldn't allow.
Pro poker players stake each other a lot. Why?
Professional poker players often trade shares of each other's action in tournaments, because although each individual has a positive EV (expected value), optimal strategy will leave most players out of the money, despite their skill. When only ten per cent of entrants in a tournament get a prize (and only a few of those get a significant prize), a good pro player can go many consecutive tournaments out of the money. Trading shares (a form of staking) reduces the variance and wild bankroll swings associated with tournament play.
Is staking ethical?
Yes, as long as players with agreements play against each other as they would any other player. Soft play or chip dumping is always unethical, but is especially so when players have an agreement.
How do staking agreements work?
There are two common ways to staking is used:
1) A player with a small bankroll has a proven long-term winning record in tournaments. Our example player has a $1000 bankroll, and should normally be playing $10-15 buy-ins for multi-table tournaments. Over 100 tournaments, this player has demonstrated an ROI (return on investment) of 20%. Several other members decide that this player is good enough to warrant a shot at a higher buy-in. They pool $550 to stake that player into 10 $55 tournaments. The player then shares a percentage of any prizes with the backers in exchange.
2) Several players with generally equal skill decide to share some or all of each other's action in a tournament they all enter. Each player covers their own buy-in, and agrees to give a pre-determined percentage of their prize to a group pool, which is then shared equally among all entrants.
Is staking profitable?
It can be very profitable, if you catch the right player in the right tournament. Many times, you will lose some or all of your stake, and that's poker reality. Doyle Brunson and Chip Reese lose tons of money regularly, but in the long run, they win more than they lose. The secret to profitable staking is to back good players over the course of many, many games. Their positive expected value will translate to profits for you.
What is a fair staking agreement?
Whatever the market will bear is fair, but no one will hold a grudge if you decline to participate. I could offer you 1% of my winnings for a 100% stake in a tournament, but that wouldn't seem fair - just don't accept it!
The basic agreement will assign equal percentages to stakes and shares. If I pay 50% of your buy-in, I would get 50% of your prize. Proven players often get deals that give them a slightly larger share of the prize, while an unproven player might accept less. A player completely paid for by others usually receives 10 per cent as a minimum.
How can I get involved in backing others?
You can watch for situations where other members ask for stakes, but the easiest way might be to buy shares in the SharkDAQ. The SharkDAQ operates somewhat like a mutual fund, where members buy shares in the fund, rather than in individual tournaments. The fund then selects players to back and establishes rules and percentages accordingly. The large pool with many shares reduces variance.
Matthew Hilger, founder of ITH, typically sells a few shares of his annual action in the World Series of Poker and occasionally in other tournaments. Watch for forum threads about these opportunities. Stakes in his action over the course of the World Series have had a positive return.
How can I get backers for my own play?
If you are an established member of the community, just post in this forum. We'll guide you on your way!
If you are not an established member, asking for stakes is against the guidelines of this forum. Whether or not you are a proven winner, the unfortunate side of any gambling activity is that there will always be people begging for "just a few bucks." Begging attempts are not tolerated by poker rooms anywhere, including online rooms, because they are disruptive. In a similar spirit, begging attempts will not be tolerated here.
The best suggestion is for you to start participating in the forum. Post hand and strategy questions, and attempt to answer others' questions. You will find that this is a very welcoming and helpful community. You can also participate in our IRC Chat. After you have posted for a while and demonstrated some success, you may just find yourself staked by SharkDAQ or some other pool.
In summer of 2006, we pooled together and played a tournament that decided one player to be staked in the Main Event of the World Series of Poker.
In September of 2006, the World Championship of Online Poker series was held at Poker Stars. Some staking for that series, along with two big staking events for the Poker Stars Sunday Million tournament on October 8 and October 15 led to the creation of this forum, due to increased interest in such activity.
The group took a loss on those two Sunday Million tournaments, but we learned a little, and had a much better showing on October 29. Discussion surrounding those three events eventually led to the creation of the SharkDAQ, which has been a steady force since.
After the WSOP this year, I plan on forming large backer pools again to get signifcant action on the $500 or $1000 Sunday tournaments with several proven excellent players. We can and will take down a big prize in one of these , and soon.
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