Poker (Texas Hold'em) surprisingly has started to decline in popularity which could be due to various factors. Omaha (high) and high low has began to increase in popularity over the past several years due to a softer player field and winning potential which could be considered one of the major factors. Conversely, the field for Texas Hold'em has increased with higher level players making the game tougher and reducing earning potential for professional players. Another is obviously the ban of online poker in the U.S. which will be the main topic for this weeks blog.

In the poker world the loss of "legal" online poker in the U.S. was a drastic impact for several players. Myself included, loved the the ability to sit around the house during downtime turn some sports on and enjoy playing poker from my home without having to commute to a casino or charity gaming room. In order to properly discuss this some background is needed on why the U.S. banned online poker websites and the controversy involved. Several legitimate concerns such as tax evasion, money laundering, and various other monies related issues where the main grounds for shutting down these websites. It also took a small portion of business away from casinos and poker rooms (poker is generally the lowest earning game played) which pays high taxes to the state that is in. These are all valid concerns but without the development of the internet and ability to reach consumers wouldn't it be beneficial to develop regulations and allow these billion dollar companies to operate and found American tax dollars?

A valid point that is brought up is how Europe and other non U.S. related countries treat gambling winnings. In the U.S. a capital gains tax has to be paid on the winnings from gambling. The argument and the belief of non U.S. entities is that the money used is POST tax dollars (taxes already paid) so if someone wins 100k on a tournament that was all funded with POST tax dollars why pay taxes on this again? Seems redundant in my opinion and I fully understand paying standard taxes (income tax) on the profits that are won and also being able to use any loss as a deduction come tax time as well. The U.S. is missing out on literally millions if not billions of taxable revenue if they allow these websites to operate or develop their own. A few websites are gaining popularity for example wsop.com which is operated out of New Jersey and available to anyone available in New Jersey to play freely on. Another develop is Pokerstars (worlds largest online poker site) having communication with California in allowing online poker. Some stipulations also exist for being located in the state Nevada similar to New Jerseys laws.

With all of the changes and development of the internet and web based business and laws such as "legalization of Marijuana" in specific areas which is now generating taxable income how is Poker not legalized online? It would be very easy for the government to regulate transactions and auditing through the IRS to make sure everything is being ethically done. This would allow for several states and federally for the U.S. to generate additional tax dollars that could be used to further develop our nation.

http://www.pokernews.com/news/2014/04/pokerstars-inks-online-poker-partnership-in-california-18118.htm

Poker, in most peoples mind is gambling and not a game of skill. Conversely, there is always an element of luck involved that can consist of getting very good hands dealt or having your hand catching up when it’s far behind your opponents. However, poker specifically Texas Hold em is a skill and math based game. There is a reason why you will consistently see the same group of people doing very well at tournaments, online, and at cash games. This is because they understand the math involved, how to decipher betting patterns, calculating odds, playing position, reading opponents, and controlling a table. Personally, I have never considered myself nor claim to be an expert or a “professional” player. I have had the privilege of watching several close friends and people I have met along the way develop into professional players and make a very substantial amount of money. Conversely, I have also met and watched some individuals consistently lose and continue to do so today. With online poker being banned in the U.S. on April 15, 2011 several individuals began taking the commute to Canada and spending several months out of the U.S. to have the ability to play online. Personally, I know several individuals in which two have earned over 8 figures in their lifetime and the vast majority of the others making well into the 6 figure range constantly every year. 

Having an understanding of the game or even mastering it will not make you a good player. Having control over yourself and managing your time and investments properly will. One of the biggest mistakes players will make is “jumping stakes” and not have proper time and investment management (bank roll management). If you are a casual player and like to play for sport and just enjoy the game then common sense is the main factor…don’t risk what you can’t afford to lose. As a professional player or having poker to be your entire source of income is completely different. Jumping stakes is when a player will move from their normal stakes (lets say $2/$5) to $5/$10 or $10/$20 (small blind/big blind). This will cause them to risk more money with a chance of losing a larger amount. This seems like an attractive idea to some because of the risk/reward benefit, but can devastate a players bankroll. Bankroll management is a simple concept if you have a bankroll of $10,000 that you use to invest into your sessions. You obviously do not want to lose your entire bankroll and keeping track of your winning/losing ratio, average amount won per winning sessions, average amount loss per session, amount of time, stakes played, and of course how much do you need to pay bills and live the lifestyle you want to live. Playing at a consistent stake where you can achieve “your monthly nut” is a crucial part of using poker as a main source of income. Someone who is capable of this will understanding when they should leave and call it a day or if they should stick around and invest more time into a table. Understanding your statistics will allow you to have a structured plan of how many sessions, amount of time you should play, and how you will achieve your goals. 

Unfortunately, there is always a chance that you have a constant flow of losing sessions which can drastically impact or completely wipe out your bankroll. This can and has happened to some of the best players in the world which is why there is a always an element of “luck” or “gambling” involved. Personally, I do not play any other games offered at a casino and do not believe in sports betting or any other form of gambling. 

BIO

I am a poker enthusiast who enjoys the challenges, swings, opportunity, and overall skill that goes into playing the game. I started playing online poker and playing live home games that where hosted by friends at a young age. This allowed me to develop my game in a shorter timeframe due to the enormous amount of hands played every session.

This blog was created to discuss upcoming WPT, EPT, WSOP, charitable events, and any additional events worth mentioning. Sharing of past and current experiences, bad beats, how to over come challenges, poker news, avoiding the peeks and valleys, and to share tips and strategies involved with the game.