Backers: Are They Good for the Game of Poker?

There’s a natural asymmetry built into the game of poker.

On the one hand, as players get more and more skilled, they should be able to win at higher and higher stakes.

That’s how a beginner becomes a high roller!

On the other hand, a player’s bankroll is dictated by his or her wealth, not necessarily their skill at the game.

This leads to a sort of paradox. Poker players with even a small amount of casino experience will be able to testify that the level of competition rises when moving, say, from a 1/2 no limit hold’em table to 2/4, and again when moving to 5/10. But ironically, as tell-all stories like Molly’s Game make clear, some of the most high-stakes games are played by people with tons of money to throw around, but poker skills that are mediocre (at best).

How can this be? And more importantly, what can quality players do about it?

The solution is probably as old as the game itself: backers.

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What is Poker Backing?

The idea behind backing is quite straightforward.

There are two parties: the player (sometimes called “the horse”) and the investor (the backer). One brings the poker skills, as well as the willingness to put in the hours at the tables. The other brings the bankroll, and assumes the financial risk. A team of professional players operating under the umbrella of the same financial backers (a team of horses) is called a “stable.”

This is model that’s obvious enough that it’s likely been around for ages. As poker expands into in the United States, the practice is growing in popularity…

…but it’s already much more common than most folks outside the poker world are aware of!

There are private companies that exist entirely for the staking and coaching of poker players. They may specialize in tournaments, cash games, or both. Sample contract templates are easy enough to find – even online – though the of an individual contract may vary considerable depending on the prominence and track record of the player and the standing of the backer.

It’s simply the way the poker business works these days. In this respect, poker resembles the movie business, pop music, or any other field: talent needs financial .

Advantages

There’s a reason why this style of partnership has existed for so long, and why it’s skyrocketed in popularity in the age of online poker.

For the horse, there are plenty of advantages.

Many poker staking stables offer free coaching from some of the best in the game; this means that, in addition to helping young players build their own bankrolls, it can help them grow and develop as well.

Similarly, stables can connect their players to each-other, providing some measure of fellowship and friendship in what can otherwise be a very solitary pursuit. As in any field, networking can offer other long-term benefits as well.

Finally, backers allow players access to superior opportunities than independent operators. A skilled player who usually plays $11-22 tournaments with their own bankroll won’t be ing for a $1500 WSOP event any time soon. But that same player, with backing, can have a shot at making the Main Event.

Disadvantages

There are a few major downsides to staking agreements.

First of all is psychology. The game of poker was designed for players to risk their own money for the chance to win more money, and put it in their pockets! The sense of vertigo that can come with going all in has something to do with the immediacy of that risk. But is that possible for players whose bankrolls are not their own?

Second, there’s the issue of transparency. It’s not as if staked players wear uniforms that tell everyone whose money they’re using, and what those individuals’ intentions are! I, for one, would not enjoy being the only player at a cash game who is playing with their own money. What would prevent collusion between of the same stable?

But the biggest disadvantage of all has to be the potential for spending long periods in makeup.

In a world where everything always goes to plan, this wouldn’t ever come up. A horse would collect $100,000 in backing, win another $200,000, then share the wins with their backer while returning the original stake in full. Assuming a 50/50 split, each party would come out $100,000 richer.

But of course, in the game of poker, the even the very best player doesn’t always win.

Makeup is what happens when the staked player loses. Suppose that, after collecting that $100,000, the horse loses $5,000 on their first day, then wins $6,000 on their second day. In that case, each party splits the profit of $1,000 – $500 each. The other $5,000 won on day 2 goes to “make up” the losses of day 1.

In practice, things can get much, much more dramatic than this. It’s not uncommon for players, even those who win big tournaments, even those with famous names, to be five, six, or seven figures in makeup for years at a time. It’s not exactly the same as debt, since if the player were to retire from the game, they wouldn’t be under any obligation to repay what they lost. But short of quitting poker, makeup will be that horse’s way of life until the losses are repaid.

The Showdown

It’s clear that staking offers some benefits to players, as well as some drawbacks. But what about its impact on the game itself?

It’s clear that staking, like lines of credit, are essential parts of the larger (poker) economy. The practice opens up fresh possibilities for players as individuals, and for the game as a whole.

Consider the paradox discussed earlier, where high-limit tables don’t always feature high-level play. Staking helps to bring more and better talent to those games,

As in discussions of credit within economies, though, the conversation shouldn’t stop there: it’s not as simple as “the practice of backing players is good and that’s that.” What about those tournament winners who haven’t seen a paycheck in years? Surely there’s a better way to do things.

At the end of the day, it seems that all parties – players with backers, those seeking backers, the people putting up the money, and the regular Joes sitting at the tables or watching at home – keep their eyes open regarding the practice.

Poker staking is downright useful, and more common than many people think. But, as with many elements of the casino gambling landscape, it’s easy to take the process too far. Proceed with caution!