Having the skills to do well from investment has been compared with the abilities needed to be a first class poker player. But there's an even closer and more relevant link and that is the growing popularity of actually investing in poker players themselves in exchange for a slice of their winnings.
There's no doubt that it's an unusual form of investment and one which is more likely to appeal to people who are prepared to take considerable risks - but the rewards can be great. For example when you consider Qui Nguyen who last year won $8 million in the World Series of Poker's Main Event just imagine being in line for a 10% stake in those winnings - in exchange for a far more modest investment.
Before we go on it's a good idea to point out that poker's seeing something of a boom at the moment with record numbers turning up for tournaments. This is a phenomenon that some believe has been fuelled by the increasing popularity of online poker which has introduced a whole new generation to the game.
The principle behind investing in poker is a simple one. All tournaments have a "buy-in" amount - the sum that needs to be paid to enter and which forms the eventual prize fund and players also need to have stake money to play in cash games. By providing a proportion of that money as an investor you will then be in line for a share of any winnings and the potential ROI is considerable.
Not many backers or players are comfortable about giving precise figures but a well-publicised example is Daniel Negreanu who sold 13% of his action before finishing second and winning $8.2 million in the 2014 Big One for One Drop - so the lucky investor certainly did well from their involvement.
However it's a risky business that's probably not for most people. The first hurdle to be overcome is finding the right players to invest in - and the fact that they're seeking investors may already be an indication that they're not quite the players they claim to be. Even if they claim to have had big wins in the past it's important to get real evidence of this, for example by seeing their tax returns for the year in question. If they're happy to show these it's also a good sign that they do declare their winnings and, by extension, are more likely to be on the level generally.
But assuming that you do find a player who seems honest with a legitimate track record there are a number of pitfalls to be aware of. For example any agreement you have may only be informal and therefore very hard to enforce by law. There's also the issue of who is liable for the tax on the winnings which is another potentially grey area.
However, that's not to say that there aren't many examples of working relationships that have been very successful on both sides - but you just need to be aware that to make money from investing in poker you need to be quite a gambler yourself.
