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How do you not bet out on that flop? It looks like this entire hand was played scared of a set.

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I disagree. I think Curtain's isn't afraid of seeing a turn card here in an attempt to extract more value on the turn than on the flop. Overs or mid-pocket pairs such as 99/TT are far more likely than a set.

A read on the player to better define his range might clear up why he played it this way. Regardless of the read, I think checking the flop is a good play.