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Submission to Senate Enquiry: Participation of Australians in Online Poker

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Submission to Senate Enquiry: Participation of Australians in Online Poker Submission to Senate Enquiry: Participation of Australians in Online Poker To Whom It May Concern: My name is Max Preston, and I am writing this submission to address the first term of reference, namely my own participation in online poker, and the second, the benefit that I derive from that. About Myself I have been playing live poker for nearly ten years, and online for about eight years. According to the terms of my employment, I cannot play at the casino, and use online poker as an alternative. I play online at Poker Stars, and previously at Full Tilt, (who have since merged into the same entity) around once or twice a week. I typically deposit $100 at a time, but generally at least six months apart. My long term goal that I explain in detail throughout this submission, is to not have to deposit at all, but play in a manner that is profitable, and at a stake that allows for bad luck without it seeing me needing another deposit. Executive Summary I believe that online poker is a means for recreational players like myself to emulate professional poker players, while only risking an amount of money that is affordable for them. This is something that is not possible in the casino, as even the lowest stake casino games require thousands of dollars bankroll in order to play with that mindset. As part of this mindset, it is necessary to have a detailed knowledge of how much I am winning or losing, and whether I can afford the stakes I am playing. I don’t need external protection for this hobby as it is inherent in the goal of playing in a professional manner that I change habits that cause me to lose money, and to play lower stakes if my bankroll demands it. Online poker also provides a game for people who are not able to play at the casino for any reason. Terms I write this submission without knowing specifically who will read it, and how much knowledge they have of poker jargon. Readers who are familiar with the terms used in poker may skip this section. I do not list all poker jargon, but those terms that come up in the arguments that I make. No Limit Texas Hold ‘em: The most common variant of poker. “Texas Hold ‘em” refers to a game where players have two hole cards and five communal cards are spread face up on the table, giving players seven cards with which they make their best 5 card hand. “No Limit” means that there is no maximum bet, players can bet all of the chips in front of them at any time. (These are independent terms, Texas Hold ‘em can be played with betting limits, and many variants of poker can be played “No Limit.” Blinds: These are the forced bets that start a hand. Generally the first two players to act in the hand post the blinds. Table stakes are expressed by the blinds required of the game, e.g. a $1/$2 game has a small blind of $1 and a big blind of $2, and therefore a minimum bet of $2. Most other amounts of money that relate to the game are expressed in terms of big blinds, e.g. a typical buy-in is 40 to 100 big blinds, and win rates are calculated by how many big blinds the player has won or lost per hour. Blinds differ from antes in that antes are posted by every player, and many recreational games do not have antes. Cash Game or Ring Game: Interchangeable terms for a poker game where players buy in for any amount within the limits set by the casino, and may leave at any time with whatever money they have in front of them. Poker Tournament: The alternative format to a cash game, where players buy in for an amount determined by the casino, receive a chip bank with no cash value, and play until one player has won all of the chips. Players are ranked in the order that they run out of chips, and the top ranked players receive payouts from the prize pool created by the buy in of all the participants in the tournament. Variance: Poker skill is based on the premise that the player who plays with the odds in his favour will win on average more than their opponent. However, in the short term, luck factors will lead even the world’s best players to have wins on some days and losses on others. This premise seen in any casino game; the game has a house edge, and makes money in the long term, yet some players on some days will still walk away winners, despite the odds being against them. In poker, instead of the house having the edge (as the house does not play) the more skilled player gives himself the mathematical edge, however this does not guarantee a win in any given hand or any given session. These short term fluctuations are referred to as variance. Bankroll: Money set aside for the purpose of playing poker. Main Arguments Online Poker is needed for good bankroll management With the rise of televised poker in the 21st century, more people than ever are aware of the way that poker professionals play. Many amateurs such as myself seek to emulate the way that these experts play. To do this in all aspects includes not only the decisions made during each hand, but also includes important elements such as bankroll management. Good bankroll management means, among other things, having enough money to cover the variance of the game being played. No Limit Texas Hold ‘em is the most popular form of poker for recreational players, but one of the highest variance games available. (To be exact, it is the second highest variance game behind Pot Limit Omaha.) Therefore poker professionals recommend having 10 buy-ins or 1000 big blinds as a bare minimum to play No Limit Texas Hold ‘em. The lowest stake offered by is $1/$2. To play this game, according to the pros, one should have at least $2000 set aside specifically for poker. However, elements of this game as it is offered by deter people who approach the game this way, and instead market it toward players who play more passively with a view to enjoy the premise of the game and let the cards determine who wins the money. For example, this game has a maximum buy in of only 50 big blinds, compared to 100 big blinds for other stakes. With factors such as this in mind, players seeking to emulate professionals the way that I do would seek to play on $1/$3 or $2/$5 tables, which would suggest minimum bankrolls of $3000 and $5000 respectively. When I play online, I choose a 5c/10c game. This allows me to follow the advice of the pros with the $100 that I am comfortable setting aside for poker. And for those who find that too expensive for their budgets, Poker Stars offer cash games for as little as 1c/2c, meaning that players can follow these principles of good bankroll management for as little as $20. In a similar vein, tournaments are offered for as little as $1.10 on Poker Stars, with many run each day for similar micro stakes, and stakes for any bankroll from the smallest amateur to the richest professional. By comparison, cheapest tournament has a $60 buy in, and is run during the lowest demand time of the day. evening tournaments are between $100 and $350. Banning online poker will take a meaningful pastime from people like me who are the exact opposite of problem gamblers. Without it, some may learn to become more comfortable in the casino without the responsible amount of money behind them, which would promote problem gambling behaviours. However for me personally, I would almost completely lose an enjoyable pastime as I am prohibited from playing at under the terms of my employment. Online Poker Offers Alternative Game Types As mentioned, the most popular form of poker is No Limit Texas Hold ‘em. However, all professionals have a basic proficiency at all varieties of poker, including Omaha, stud games, draw games and lowball games. Most of these games do not have the popularity to be played at all in the casino, and can only be practised online. As a player seeking to emulate professional players, I use online poker to play all of these games. Without online poker, even if I were able to play in the casino, I still would have no opportunity to play these games, save during the Aussie Millions, where there are enough true professionals visiting to justify holding $400/$800 ring games, and tournaments with $1100 buy in. Needless to say, neither of these are within my bankroll. Online Poker Makes Poker Accessible Banning online poker will restrict cash game poker to casinos. This will make it inaccessible to many people, including myself. For myself personally, as I mentioned, the terms of my employment at prohibit me from playing there. Therefore, if online poker were banned, the only opportunity that I would have to play a ring game would be by making an interstate trip to another casino. This is something that I can’t afford, as the trip and accommodation would add to the massive bankroll required to play casino games. I would just miss out. As someone who is originally from a regional area, I can speak for another group of people who would lose out if online poker were banned.
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