Published in the Financial Times Weekend Magazine. Hedge fund managers bankroll on line poker players as part of their firms business model.
Smith’s view now is that the best-performing poker players offer a better return on risk than those dealing in futures. But in percentage terms, the pay-out to a successful poker player is much higher than it is to a trader. Once a player makes $100,000, his split with BadBeat rises to 70/30 in the player’s favour. The best BadBeat player will make between $2m and $3m this year for himself. That means he is also raking in profit for BadBeat – and that BadBeat wants to retain him.