I have a stupid, beginner-type question ...

[adamstewart]

How does staking work?

I've never clearly understood the advantages for either party regarding 'staking someone'.


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Adam

[thirddan]

in over simplified terms, someone provides the bankroll for another person in exchange for a percentage of that persons profits...

advantage for the staker = assuming the stakee is profitable they will make some money

advantage for the stakee = get a bankroll, sometimes used to play a little higher....

[jb9]

Ideally it works like this:

1. I have more money than you.
2. You are a better poker player than I am.
3. I give you money to play in bigger games than you can afford on your own, and you agree to split the profits with me.
4. You win, we split the profits exactly as we agreed to, and we are both happy.

Number 4 is the one that seems to cause all the problems.

[adamstewart]

What happens if the stakee busts out? Is he obliged to pay the original amount back?


Adam

[UATrewqaz]

*grunch*

I know you are good but you are broke, and I also trust you.

I give you a bankroll of money, with the understanding that I get a cut of your winnings.

At some point in time you can repay the stake.

I gain by making money off of your playing and you get the opportunity to jump right into a decent limit game with a workable roll right away, rebuilding your own roll.

The main problem is trust, if he wins will he run off with the winnings? Will he steal my stake? What if he plays stupid cuz it's not his money and busts? Etc.

[adamstewart]

Okay,

Here's kinda what confuses me ....


Let's say I beat the 10/20 game for 2 BB/100, and I enough of my own bankroll to play at that level.

Let's say someone stakes me for the 30/60 game. Now, this is a tougher game, so I'd be lucky to beat it for 1 BB/100.

Now let's say my staker and I agree to split our profits 50%/50%. Therefore, I'm earning $60 per 100 hands, but splitting 50% with my staker, so only taking home $30 /100 hands.

However, at my regular self-rolled 20/40, I was earning $40 /100 hands.



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Adam

[jb9]

[ QUOTE ]
What happens if the stakee busts out? Is he obliged to pay the original amount back?

[/ QUOTE ]

It would depend upon the agreement, but usually I think not.

The staker is investing in the stakee. When you make bad investments, you lose your money.

[thirddan]

but if you are broke and thus earning 0/hr in the 10/20 then getting staked and earning 20/hr wouldnt be so bad while you rebuild a roll...

[adamstewart]

[ QUOTE ]
but if you are broke and thus earning 0/hr in the 10/20 then getting staked and earning 20/hr wouldnt be so bad while you rebuild a roll...

[/ QUOTE ]


Okay, i get that ..... but what about the higher limit pro's who get staked?

[jb9]

[ QUOTE ]

Okay, i get that ..... but what about the higher limit pro's who get staked?

[/ QUOTE ]

They do not have the cash to play the games they want to play and/or they want to limit their risk.

[jason_t]

[ QUOTE ]
Okay,

Here's kinda what confuses me ....


Let's say I beat the 10/20 game for 2 BB/100, and I enough of my own bankroll to play at that level.

Let's say someone stakes me for the 30/60 game. Now, this is a tougher game, so I'd be lucky to beat it for 1 BB/100.

Now let's say my staker and I agree to split our profits 50%/50%. Therefore, I'm earning $60 per 100 hands, but splitting 50% with my staker, so only taking home $30 /100 hands.

However, at my regular self-rolled 20/40, I was earning $40 /100 hands.



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Adam

[/ QUOTE ]

Experience in a bigger game.