Posted: Sat Aug 04, 2007 6:11 am Post subject: Being bankrolled
Hey, I've been just making ends meet playing poker, mostly by traveling, for the last year. I've been playing with some guys who are very wealthy (not by playing poker) I have one of these guys who now has agreed to bankroll me, hopefully this will allow me to play and win bigger.
Question: What kind of laws/ problems can I run into being staked, do I need some sort of contract stating the % split, and I don't pay him back if I lose.
Is it even "legal" to get this kind of money? How do I find this out?
I am not aware of any law that bars "staking" in particular, but that doesn't mean there isn't one out there.
The devil is in the details. The first question is the locality involved. Every state has different laws that would need to be researched. The second question would be determining exactly the nature of the arrangement. For even if the agreement in a general sense is permissible, it may be illegal or unenforceable if the term are too one-sided.
For example, it is not illegal to loan money. But it is illegal to loan money and charge an excessive rate of return (as that might amount to "usury" or "loansharking").
Written agreements are better in the legal sense, but may not be better on a practical level. And just because it's in writing doesn't mean that a court will enforce it, if they consider the contract to be against public policy.
So the bottom line is that your question is too general for me to answer sensibly.
On the other hand, I think it makes sense to ask others what kinds of staking arrangements they have used.
I am not aware of any law that bars "staking" in particular, but that doesn't mean there isn't one out there.
The devil is in the details. The first question is the locality involved. Every state has different laws that would need to be researched. The second question would be determining exactly the nature of the arrangement. For even if the agreement in a general sense is permissible, it may be illegal or unenforceable if the term are too one-sided.
For example, it is not illegal to loan money. But it is illegal to loan money and charge an excessive rate of return (as that might amount to "usury" or "loansharking").
Written agreements are better in the legal sense, but may not be better on a practical level. And just because it's in writing doesn't mean that a court will enforce it, if they consider the contract to be against public policy.
So the bottom line is that your question is too general for me to answer sensibly.
On the other hand, I think it makes sense to ask others what kinds of staking arrangements they have used.
Well, I live in Cleveland, Ohio. The agreement we have now is He will give me a couple of buy ins per week for a 30% on my profit return. If I lose a ton, he eats it. The biggest thing I'm worried about is if I go to Detroit or Vegas, have a huge cash out in a cash game or tourny, I can't walk around with 20k in cash.
Thanks for the help so far, hope this helps someone to give more info.
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