What is a Backing Deal?

The practice of backing in the poker world is one that has created much debate among players. Is it legal? Ethical? Even lucrative?

Backing, or staking, is the act of a person fronting money for a player to use for buy-ins with the hope that the player turns a profit. All winnings are split on a prearranged percentage between the backer and the player.

The staking of players has become a major component on the tournament circuit. It offers a player in tough financial times or with insufficient funds to take a shot at higher stakes without the risk of going broke. For the backer, it’s like an investment. Normally the investment will only take place if the player has a sound reputation as a winning player at the tables. You wouldn’t put your hard-earned money into dying business with no hope for recovery. The same goes for a losing poker player.

It’s become customary for this to take place both in the live and online setting. I saw the transfer of thousands of dollars between backer and backee at the World Series of Poker this summer on numerous occasions’ right on the floor at the Rio. Bricks of cash exchanging hands minutes before a tournament. One problem with the live staking deal, however, is the high variance involved in major tournaments. The buy-ins for live events can range from a few hundred dollars to $25,000 — or even higher — and players grind it out for up to a week or a couple weeks at a time. It’s common for even the best players to go dozens of events without even cashing, making for a frustrating period of time on the circuit.

The online backing arrangement is far more rational. Players can play multiple tournaments at a time in the comfort of their home without the added expenses of travel and hotel accommodations. The higher volume will result in an even distribution of results over time and the top players won’t go months and even sometimes years losing money. While the prize payouts don’t come close to matching that of major live events, the warm feeling of having money in your pocket on the regular makes up for it with a lot of players.

Those involved don’t seem to think much of it, but individuals on the outside need to be wary of the potential issues that come with the backing arrangement. The obvious topic is collusion between backers and players. What happens when they’re seated at the same table? The likelihood of soft play increases and unfortunately in most cases the other players at the table won’t have any reason to be suspicious. Most backing agreements are kept under the radar. Even the slightest adjustment of a player’s game can be considered collusion and there have been instances in the past where such a thing has been alleged.

With the current shaky state of poker in the United States this is the type of thing we hope not to hear about. Another possible disaster involves trust between the two parties. Most deals are generated merely by shaking hands and a lot of backers have been scammed by players, adding even more risk to the arrangement. These are concerns the poker community would like to keep out of the public eye and it gives a lot players more incentive to try and rid of the game of backers altogether. But staking will be around until rules are set in place by the Tournament Directors Association to prohibit it.

Read More Holdem Strategy Articles