backing

[technologic]

not sure where to post this so i'll post it here cause it has to do with investing sort of

is backing poker players a profitable play? i was discussing this with my friend and had the hypothetical situation come up.

let's say you staked a friend to play someone HU for 10k, and you estimated his edge at 60-40.

EV = 2000

but hold on a minute, say taxable rate is 30% of that.

EV = 200

this is ASSUMING you get 100% of the wins, which doesn't ever happen in a backing deal. so how do backers ever make money from these propositions? are there special tax loopholes or what not?