Monday, August 3, 2009

Grasping the World Series of Poker Payout Structure

By Brian Garvin

To learn more about the World Series of Poker Payout Structure, you have to know where it all began. 1970 to 1977 a marketing genius named Benny Binion promoted his poker tournament as "winner-take-all". World Series of Poker has never been winner-take-all and probably never will. Benny Binion took that concept, made his event a world championship caliber tournament, and the buzz caught on. World Series of Poker prize money was always negotiated by the players.

Those type of deals mentioned above, didn't always end up at the final table like it does today. Before the tournament started, the players voted on how the prize pool should be distributed and separated. Players resumed playing using 25% of their previous chips. 75% of the other chips were exchanged for cash at the cage.

25% usage of previous chips and 75% exchanged for cash was the standard operation procedure and prize distribution until 1977. The idea of a winner-take-all event was fabricated and the prize distribution and standing operating procedures where grounds for a legal investigation. The federal broadcasting law wasn't enforced even though such a practice like the scandal of the quiz show "Twenty One" was rigged. This law wasn't even outlawed.

With the legalities of it all, sporting events were being shunned. In the mid 1970's, CBS began to broadcast tennis tournaments as winner-take-all at Caesars Palace in Las Vegas. However, tennis stars Jimmy Conners and Rod Laver both confessed that they were splitting the prize money. This left CBS in a rather precarious position as they were fined by the FCC and had to issue a public apology.

With federal investigations being conducted, Mr. Binion realized that he had better act quickly and make some changes. Binion quickly disposed of the idea of winner-take-all, and learned that he would have a better following by paying more spots instead of less. So Binion came up with another marketing success, telling the players in his tournament that he was paying the top 5 spots that year.

The top five players that participated in the event in 1978 were paid out. This new payout structure lasted until 1981 when Binion changed it again to the vastly growing field when Binion paid out the top nine players. Paying out nine spots lasted until 1986. With an overwhelming growth in entrants to 141 in 1987, it forced Binion to once again pay out more spots.

Players started pouring in from all over the world, and in the upcoming years would set attendance and payout records. This started with the Chris Moneymaker shocker in 2003, setting a new record for winnings in the WSOP. In 04' Binion paid out 225 spots. He was at it again in 2005 paying out 560 slots, and 873 in 06'.

As you can see the WSOP has payout structure has grown very rapidly over the years, just like the game's popularity. The game now is being shown on ESPN which is the largest sporting network in the world on television. The WSOP has become a huge phenomenon. Its pretty hard to imagine having these types of fields back in the 1970's, but it is growing every year and now is well over 1,000 entrants.

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