Standard Agreement When Staking Someone in Poker (HELP PLEASE!)

[Chomper4]

I'm sure this isn't the right forum for this, but this is where I hangout and I know and respect alot of you guys opinions so I'll ask here. I'm not sure how to word it so bear with me. I actually have 2 separate questions so can you guys number your responses?

1) If someone "stakes" you money to play poker, what is the standard profit split if the deal is that the stakee doesn't have to pay the staker back if he loses?

2) If someone "lends" you money to play poker with the agreement that if you win, you will give the lender a certain percentage of winnings, but if you lose, you will pay the lender back in full, then what is the standard percentage the lendee gives the lender?

I hope these questions sort of make sense. Just give your opinion if you have one or if you have done deals like this, then share the details with me please? Thanks for the help guys.

[TwistedEcho]

Why would someone want to agree to #2?

[Chomper4]

[ QUOTE ]
Why would someone want to agree to #2?

[/ QUOTE ]

It's technically almost like a bank loan. The player doesn't have the stake to play right now, but works or is expecting some money in the coming months and wants to get in the game right now so they borrow. It's that or not play and they'd rather play. Get what I mean?

[Chomper4]

If I were to guess it would be something like...

1) 60-40 for staking
2) 85-15 or 80-20 for lending

Do those numbers make any sense?

[aeest400]

A good discussion of the issue can be found in Mark Blade's "Prosessional Poker."

[Chomper4]

No one has ever been staked or staked someone and can give me any kind of feedback?

[bigfishead]

I was in a professionally run tournament staking deal at one time. All legal and everything.

Here's how it worked:

30 days in advance I would submit the events and buy-ins I wanted to play. If travel was involved that was my problem. As were any other costs.

If approved, I would receive a cashiers check for the amounts of the buy-ins.

After the events I would be required to submit a full report on each event. Player porfiles, problem hands, etc.
If I cashed in the event (each tournament was autonomous of the others), I would be required to take the tournament entry + fee out then we split the profits. 50-50

Hope this helps.

[StregaChess]

[ QUOTE ]

1) 60-40 for staking
2) 85-15 or 80-20 for lending

Do those numbers make any sense?

[/ QUOTE ]

If the 60% is for the banker yes, if the banker is getting only 40% there is no way I'd put my money up.

However by the next part of the question I can only assume that the 40% is for the banker.

Now the 80-20, side....

How liquid and accessible is the collateral?
(breaking legs does not count)

The assessment of risk and speed of pay back should have some influence on the terms.

Low Risk <= 15%
High Risk >= 20%

Something along those lines….

Total entry fees versus first prize, the ratio would also have to be considered.
Past performance of the player, what percentage that you have finished in the money with events of similar size?


Really in business a good deal is a state of mind.


The other side of the coin is if the banker has deep pockets he may get a thrill of having a piece of a big event. That’s entertainment value on his part which would shift the percentages to your advantage.

If he has a big ego and if is an ESPN event, you have vanity at play if he believes he might get air time. That’s also a shift for you…

I think a lot of this is what you can put together as a plan and how you can sell it.

[Chomper4]

So if it's a stake, then 50-50 seems like the fair amount but as a loan, the standard is 15-20 for the banker? This is more of staking along the lines of the banker giving a few thousand to the player for the month and at the end of the month, splitting the profits or paying back the loan if the player loses rather than staking for specific events. This isn't for me, this is a deal between a relative and friend who I am both close with. My cousin is the banker and doesn't know what standard terms are so I told him I could come on here and ask around. Any input helps and thanks to those who have given an opinion so far.

[StregaChess]

[ QUOTE ]
few thousand to the player for the month and at the end of the month,

[/ QUOTE ]

If it's going to be paid at the end of the month, god.. it really does not have to be all that much.
Why not just ask for a flat fee loan?
Give me $2K now and I'll pay you back $2k plus $250 at the end of the month.
Easy money and a zillion times ahead of a savings account!