Poker economics refers to how money flows through the poker ecosystem—from recreational players, through the tables, to the house and winning players.
Understanding economics helps you find where the money is
Recreational Players
(deposit money)
↓
Poker Tables
↓
┌─────┴─────┐
↓ ↓
Rake Winners
(to site) (skilled players)
| Source |
Reality |
| Recreational players |
Primary source |
| Players moving up too fast |
Lose at higher stakes |
| Tilted players |
Spewing money |
| Gamblers |
Action-seekers |
Key insight: Without recreational money, pros just trade with each other minus rake (everyone loses).
| Destination |
% of Money In |
| Rake |
3-10%+ of all money wagered |
| Winning players |
What's left after rake |
| Staking/coaching |
Secondary economy |
| Concept |
Meaning |
| Zero-sum game |
Money changes hands |
| Negative-sum (with rake) |
Total money decreases |
| Skill determines share |
Better players get more |
| 6 Players Deposit |
$1,000 each = $6,000 |
| After rake (say $600) |
$5,400 remains |
| Distributed by skill |
Top players take most |
| Factor |
Economic Impact |
| Rake every pot |
Constant drain |
| Rakeback helps |
Returns portion |
| Player churn |
Fresh money entering |
| Factor |
Economic Impact |
| Fixed rake (buy-in fee) |
Known cost upfront |
| Top-heavy payouts |
Few win, most lose |
| Overlays |
Free money when guarantees aren't met |
| Stake |
Sustainable Win Rate (Online) |
| Micro stakes |
5-10 BB/100 (good players) |
| Low stakes |
3-6 BB/100 |
| Mid stakes |
2-4 BB/100 |
| High stakes |
1-3 BB/100 |
As stakes rise, competition gets tougher.
| Role |
How It Works |
| Backer |
Provides bankroll, takes % of profits |
| Horse |
Plays with backer's money |
| Deal |
Typically 50/50 or 60/40 |
| Makeup |
Horse must clear losses first |
| Service |
Approximate Cost |
| Training sites |
$30-100/month |
| Group coaching |
$50-200/month |
| Private coaching |
$100-500+/hour |
| Solver software |
$200-500+ one-time |
Poker is negative-sum due to rake. Money flows from recreational players to the house and skilled players. Understanding this helps you seek games with fresh money, consider rake impact, and recognize that your profit depends on someone else's loss.