Poker as an Investment

Investing money in the stock market is often seen as a smart move by financial analysts and talking heads on television. Putting money into stocks as a long term investment may be a smart move for people looking to diversify and expand their personal wealth. Moving some money into the stock market may be a good idea, but for the poker players it may be just as smart to continue playing online poker and keeping your assets liquid.

Here are the stock prices of 4 major corporations. The first figure represents the current stock price as of August 3, 2010. The second figure is the stock price as of August 3, 2009. If the company paid out a dividend it is noted behind the second figure.

Intel Corporation - $20.87 / $19.87 / 4 dividends of approximately 15 cents each.
Citigroup, Inc. - $4.13 / $5.00
Bank of America - $14.34 / $17.55 / 4 dividends of 1 cent each.
Toyota - $72.77 / $85.19

Each of these companies is now worth less today than they were one year ago. Granted it is very possible their stock price could rebound nicely but in this economy there is no such thing as guaranteed profits and returns on investment.

If an online poker player instead took their money to the virtual felt and had a rakeback deal, as long they break even while playing they would still be making money guaranteed year over year. A rakeback deal means you get back a portion of the rake you generate from playing in real money ring games and tournaments. For example, if you play two tables of full ring poker at the $.25 / $.50 limits and play for an average of two hours per week, by the end of the year you will have made $144 from your rakeback deal. Even if you lose some of your initial money, you are still guaranteed rakeback.

No one can guarantee that will not lose money in the stock market or playing internet poker, but if you have a rakeback deal you can sleep soundly knowing you will be getting back at least a portion of the money you generate for an online poker room.

Curtis Steuber.