• Standard Poker Staking Agreements Rules

PROFESSIONAL LAND SURVEYING SERVICES. This Agreement, made as of the th 29day of January, 1999, by and between the County of Wake (hereinafter, the 'Owner') and McKim & Creed Engineers, P.A., a professional firm with partners. The subject of staking in poker, or any gambling related business, is tricky. If it's handled the wrong way, friendships are broken, money is lost, and nobody is happy. If done correctly, however, it can be a lucrative investment for the backer, and a valuable tool for the one being backed. Here is what a basic poker staking agreement might.

Poker staking is a huge business where a lot of money can be made (or lost). In fact, a lot of guys involved in the poker scene don’t even play — they just stake other players. Staking can be part time, or full time job, and it’s a great way to diversify your investment portfolio.

But before I get too ahead of myself, you might be wondering what exactly poker staking is, and why you might want to know more about it. So let’s get into the ‘what’ first, then move into the ‘why.’

The simplest way to understand what poker staking is, is to think of it like a loan.

For example, say you want to play a $200 tournament. You have the skill set to play, just not the bankroll. So you come to me and ask me to give (stake) you the $200. In exchange for the loan, we agree that if you cash, I get my original investment back, plus a percentage of any profits made. If you don’t cash, neither of us make any money.

That’s all poker staking is. It does get more in-depth than this, though.

Length of Loan — The Number of Games Being Played

For one thing, most players who receive backing are staked for longer periods of time (not just one game). This can vary from 20 games to over 20,000 games. The shorter terms are often used for players who just need temporary backing for a special event, such as SCOOP or the WSOP. Shorter terms also used to try out ‘horses’ before backing them long term.

From my experience, most long term staking deals (5k-20k games) are for players who are seeking coaching in addition to a bankroll. Staking deals are longer because coaches will lose money (time) upfront coaching, but over time will start to slowly recoup that money as the player gets better.

Interest or Cut — The Amount of Profit Paid to the Backer

Interest isn’t referred to as interest in staking — it’s referred to as the ‘cut.’

The cut is always a percentage from my experience, and will vary dramatically. A new player can earn as little as 15% of his profits (85% to the backer), while a semi good player can earn 50% and experienced player as much as 90%.

The cut is also determined by the amount of the staking agreement, as well as the number of games being played. The fewer games being played, the less likely that a profit will be made. This, of course, is only riskier the more money that is loaned out. So to offset some of the risk, a higher cut is given in favor of the backer.

One last thing that comes to mind about what affects the cut is whether or not makeup is apart of the deal or not.

If there is an agreement to makeup being owed, the cut will often be less in the favor of the backer, since there is a possibility to recoup losses. However, if there is no makeup in the agreement, then the cut is higher (in favor of the backer) because the risk of losing his investment is higher.

Why You Should Care About Poker Staking

As I mentioned earlier, poker staking is a huge business. There is a lot of money to be made, both as a backer and a horse. That’s why you should care about it.

To elaborate, say you’re interested in backing a player. You set him up with a bankroll of $300 to play $6 SNGs where he averages $1 a game. Your agreement is for 5,000 games, at a 50/50 cut with makeup.

Assuming he doesn’t improve (or gets worse), you’re going to see an average of $.50 per game, or $2,500 from your investment. Most players can knock out 5,000 games in two months, which means you’re earning $1,250 each month.

That doesn’t sound like a lot, does it? But think of it like this. What if you continued to take your profits and roll them over into new players at the same games and stakes. In other words, take that $1,250 each month and pickup 4 new horses that average $1 per game. That means the next month you’ll have 5 horses (instead of 1) making you $.50 per game for 2,500 games each. That’s $6,250** in one month — are you interested in staking players now?

Now, if you don’t have that much money to invest, you can grab a partner. The cuts will be determined by how much each person invests (time and/or money).

Becoming a Horse

But what if you’re interested in being staked; is it profitable?

You bet your ass it is.

The reason why is because you never have to have your own bankroll. All the profit you make you can keep and use to start your own staking business, build your bankroll so you can eventually play on your own dime, or withdraw and use as you wish.

The best part is that for most long term agreements, your bankroll is essentially bottomless. You don’t have to worry about losing it, because if you do, you just contact your backer and get a reload.

** One thing that I should point out, is that the amounts are only examples. If it were only as easy as taking a positive return and rolling it over, and then rinsing and repeating, everyone would be rich. You still run the risk of losing your money, whether partially or in full. With that being said, keep in mind that you will want to keep a reserve in addition to your bankroll so that you can reload players as needed.

Poker staking for tournament poker is much more common than a cash game poker stake. The variance experienced by tournament players is much more extreme than what a cash game player will face.

For this reason, many players will suffer negative effects with their mindset and consequently, the quality of their play will drop.

Having a dedicated poker bankroll via a poker stake is a great solution to both of these problems. Players who have tried and failed to move forward with their poker careers should consider whether or not the pressure of risking their own money is the best way forward for them.

In today’s incredibly tough and competitive playing environment, you must take every step possible to maximize your chances of success. Applying for MTT staking is well worth considering if you are struggling to meet your goals.

How Does Tournament Poker Staking Work?

Just as with cash game staking, MTT staking and SnG staking always come with a number of important agreements between both parties. The aim is for these agreements to meet the expectations of both the backer and the player.

This is always done to protect the backer’s investment while at the same time attempting to further the career of the player with opportunities that wouldn’t always be possible outside of a poker stake.

The player will be most concerned with the profit split. The standard deal offered to a new player is normally 50/50. We offer a 60/40 profit split to start with adjustments being considered on a case-by-case basis.

The timing of payments is also agreed on a case-by-case basis. There are factors such as maintaining volume requirements and meeting your profit targets.

Unlike a cash game stake where a rigid stop loss is set, MTT players usually have an agreed-upon schedule and daily bankroll.

SnG players will have a stop loss because they can play many tournaments in a short period of time. Huge swings are possible in a single day where mindset issues can become a considerable factor after losing a large percentage of the bankroll.

Makeup is important in any online poker staking deal. Players who are currently losing money will not be allowed to back out of their deal, either to return to playing with their own money or to make a new deal with another backer.

While we have no restrictions on quitting when the account balance is positive, players will not be permitted to leave when in makeup. There is no time frame commitment with VIPshark.

What Are The Benefits of MTT Staking and SnG Staking?

Tournament poker has extreme variance which can wreak havoc on a player’s mindset. The difference between cash game variance and MTT variance is enormous.

Signing up to a poker staking site is one way to completely avoid massive downswings ruining your mindset, leaving you playing scared. Playing any kind of poker while being frightened to lose is a sure way to ruin the pleasure of playing.

Another benefit is having the opportunity to work with other players who are also striving to move up the stakes ladder. Networking with other players who are working on their game too is a great way to accelerate your progress.

Where Should You Play?

If you only play your tournament poker volume on one single poker site then choosing the most suitable one is crucial. On smaller poker sites you simply won’t be able to play enough.

For this reason, PokerStars isn’t seen as an overly bad choice due to the high number of tournaments offered. Even though their Rakeback scheme is incredibly poor, offering as little as 2-5% cashback, you will be able to play as much volume as you can handle regardless of your time zone.

While Rakeback works well for cash game players who experience little variance, tournament players will find that the cashback does little to dampen the swings you can expect.

Because of this, chasing the best Rakeback deal should not be the most important factor when choosing where to play.

The software of your chosen poker site is always of high importance. MTT players are forced to spend long hours playing during deep runs and poor software contributes to your stress levels rising along with other problems such as tiredness and eye strain.

We offer enhanced deals to micro and small stakes grinders – 60%+ – who can put in large amounts of volume. This is another reason why choosing a more mainstream poker site is beneficial for tournament poker players.

Who Can Get A Stake With Us?

VIPshark offer MTT staking, SnG staking, and even Spin&Go staking, to players who are at least breaking even at micro stakes and small stakes.

We seek players who are motivated to work hard and play responsibly to give their poker career the best chance of success. Responsible play is of great importance to us. We are investing in a player’s career financially with the hope that the relationship will be beneficial to both parties.

For the staking deal to succeed, players who successfully apply must put together a plan of action for both their playing schedule and their study time. Tournament play used to have a reputation for being much softer than cash games, but this has changed rapidly over the last few years.

Players who can take this professional approach are the most likely to succeed at this tough game and this is exactly what we are looking for.

Standard Poker Staking Agreements Rules

We take each player’s circumstances into consideration when putting together a deal and we are always prepared to negotiate a special deal if you have certain requirements.