With $ 100,000 you can buy a lot. For example, an apartment. You can also put two Corvettes 2018 in the garage. If you want to invest in the future, buy 275 Netflix shares with the money. You may also jump on the crypto train and get 13 bitcoins.
For a few elite poker players in the poker world, $ 100,000 is a simple business expense. High Roller tournaments have become a must-have for some players as the winner wins high prize money. How big is the share of the buy-in that players from their own pocket? Even though these players are among the best of the best, the risk of buying into a tournament for between $ 25,000 and $ 100,000, sometimes even higher , is to much for almost everybody.
This is where high roller staking comes into play. Behind the players are financially strong “investors” who put their own money.
The High Roller Life
The poker pro Dominik Nitsche is very familiar with the system and talked to PokerNews about how the staking world looks and works in detail.
“IT IS NOT A SECRET THAT THE MOST HIGH-ROLLER PLAYERS ARE FINANCING INVESTORS.”
“It’s no secret that there are financially strong investors behind the most high roller players,” he says. “It’s a group that buys all the shares that some of the best players in the field want to sell. There’s nothing more to say about that. A player tries to sell his shares to someone, and that person says, ‘You’re good. I’ll pay the markup, so your action is sold and you can play. ‘”
Nitsche notes that the misperception is still circulating that this system applies only to german players, but that’s not true. The small backer group which is involved in the high roller action, also invest in a lot of other players all over the world.
Among the backers are former online high stakes players, Nitsche said, who were among the big winners and now use their winnings as capital to invest in players. Backing offers the prospect of large returns, even if the risk is not to be despised. However, the backers probably believe that their money is better invested than in the stock or real estate market, in fund accounts or start-ups.
The baking of high-stakes players is definitely lucrative when a player have success. The High Roller Regular Justin Bonomo has taken the 2018 High Roller scene by storm, if we only take this year, he has won $ 14.6 million in tournaments with buy-ins of $ 25,000 or more. This includes his $ 300,000 Super High Roller Bowl win on May 30 for $ 5 million. Bonomo backers have a real reason to be very happy. At this point we should point that nobody know anything about his staking situation, it is only likely that he has Backer.
It is common for players to take over the buy-in at an event, but what is the percentage of each tournament? It depends on the event, the player and the interest of the backer. Some players sell their entire action and basically play a freeroll. In order for these players to have a reason to play, they are granted a markup – in this way, players end up with 2 or 3 percent of the winnings.
“That’s a good agreement,” said Nitsche. “You do not have to risk your own money, yet you play in a $ 100K for $ 3,000 or $ 5,000. So that’s not a bad deal if you’re a good low stakes player. “
In other cases, a player pays the half of the buy-in or sometimes only 20 percent. Nitsche says most high-roller players have an average of 30-40 percent of their action.
In addition, most players agree with other participants from the field swaps for no more than 5 percent. If you do not know what swaps are all about, that means each player will have that share of the other’s action if one or both of them wins the prize money ranks in that tournament.