I am currently looking into buying a poker tournament business. It runs high stakes tournaments and collects a percentage of the entry fee.

All my questions have been answered by the sellor but I am having a hard time convincing my friends and associates that this could be a fun and profitable endeavor. This could be because most of them dont believe in the poker boom and think it is a fad, I disagree.

The business has a track record and existing business plan to move online.

I am really looking for a prospective partner who has complementing skills to my own, I have a financial and accounting background. I need someone to brainstorm with and who is excited about the prospect of traveling the world hosting poker tournaments. Currently they are only doing a few a year and still making a profit. I am still uncertain that I even want to go ahead with this but any comments suggestions would be appreciated.

I have noticed that the World Poker Tour has been being shown in Australia on Fox 8 it is great to see the final table the guys put literally hundreds of thousands of dollers on the table.

I may be wrong in this but i beleive the way it works is that the tournament starts with hundreds of players who are slowly eliminated by losing there money(this is the remaineder of the entry fee) and it builds until a final table where 6 people have all the money from the entry fees.

I should emagine that there are many other sources of income that could be dervied from such a business such as promotional products, and entry for spectators. Plus if the tournaments were highly successful you may even be able to sell TV rights.

Poker is a big thing yes, and i think it will remain fairly popular but exactly how popular i dont know.

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Joel Brown - Orion Networks
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"I am wondering, is the only source of revenue generated from the percentage of the entry fee? where does the rest of the entry fee go?"


For example if its a $5,000 tournament the prize fee is $5,000 the entry fee is $500 (or a $5,000+$500). The prize fee is split between the winners and the $500 is the enty fee that is split with the host (hotel or casino) and us. There are other posibilities for revenue that include offering a package deal with lodging, airfair, and tournament fee's included, not to mention possibly doing something online for high stakes tournaments. I personal feel it could do more tournaments in a year than 4 and therefore grow in that respect (if you can do 4 than you can do more).

The tournaments that have been completed in the past year involved 30-40 players with $2k-6k in entry fees.

The tournaments operate more or less how Joel put it. The prize fee is split between the top players and can become quite large. There is little work to be done on event day given the host will have staff to operate the tournament. Anyone who wants to discuss this can also email me at dbincometax@aol.com.

Could the tournaments not be larger then 30-40 people with a bit of work??

Also yes if you think about the number of Casinos even just in the US, let alone if you consider UK and Australia as well as other countries, and possibily even Tournements on a Cruise, it would think you could easily double or triple.

This part is that the entry what the players pay or is that the total revenue that is earned from all players.

It sounds like a good oppertunity.

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Joel Brown - Orion Networks
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I am sure the tournaments could be bigger I believe the issue is signing up the players and how much advertising to spend. My contact person feels that higher stakes tournaments are the way to go. I feel that there is a high stakes poker market that is not being exploited.

When I said $2-$6k what I ment was, for emaple, if it was a $6,000 tounament then its refered to as a 6,000+600. $6,000 goes into the prise pool and is shared with the winners, the $600 is the fee and accounts for our revenues. Part of this fee also goes to the casino or hotel where the tournament is being held.

Ahh ok i am not really that knowledgable on the terminaolgy of the tournaments, i have only really watch the WPT.

So you mention you are looking for a prospective partner, what would this partner need to put in and what would be involved?

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Joel Brown - Orion Networks
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The prospective partner would have to put up nothing unless they/we decide to go ahead with it.

The fee being asked is reasonable and any prospective partner would be 50/50 if we decided to go ahead. I have done the leg work, have a passion for poker, and an accounting background. I worked in the securities industry (stocks and bonds) in compliance. I have my series 7, 63, 24, and 28 (not that I expect anyone to know what they are but my point is I have a background in compliance with regulatory agencies, i.e. NASD, SEC, IRS, ect...)

I am looking for someone to brain storm with and persue this opportunity until one of two things happen: We decide to go ahead with it and make and offer to the prospective sellor, or we decide to walk away. If it is decided to go ahead it would only be after extensive conversations and emails between each other and the seller.

My partner could be located anywhere given that we would only have to met at the event. There are other prospects for this business that I can explain. If you would like more detail you can email me at dbincometax@aol.com.

I think to really have it work you will need to pull the truly professional players in to "legitimize" the tournament. Anyone can put on a card game with a cash prize for the winner---you will need to make it a truly professional event for professional players. You won't go big time with players with big wallets and no professional or amatuer card playing experience. What you really need is a former or current player that is known and knowns lots of other players to become a partner. Perhaps even having them officiate the game. With them on board to promote, it will be easier to pull in the pro players, gain noteriaty and eventually sponsers/partners. Just my two cents.

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10-20% of the players have been professionals.

NumberGuy, im interested but thinking the following....You are entering a very incestuous/tight knit industry... Indian tribes, big casino operators, etc... These groups are loathe to give up control...

What are the barriers to entry after you acquire this company?

What is the Unique Selling Point that you will make to the casino operator (who is swimming in a cash flow rich business) that he should hire you to do his marketing for your Texas hold'em tournament in his casino? Greater media exposure? more Bums in their seats? more customers at his blackjack tables? a cut of the entrance fee? (I understand slots are the best money maker for casinos)

Are the 10-20% professionals gonna bring out the big gamblers? how are you going to get Grandma to pull the slots? Are you going to get the local cable tv to cover the events? Most of these casinos already hold tournaments of their own...are you going to partner with a boxing promoter, or other event company to drive more "bums in his <slot> seats??

Idea: You could follow the NASCAR tour around the country and "coincidentially" show up at a nearby casino. You could leverage the natural demographic of the crowd that attends NASCAR, and co-sponsor with a supplier that is appealing to that demographic? I understand that there are people that tour with Nascar like we toured with the Grateful Dead in the 70's and 80's.

If the "name /professionals of your tournament" doesnt drive up the contestant numbers, remember, you are looking to buy a service business, is the seller (the main "knowledge base" of this service enterprise) staying on to show you the ropes? (if the seller does stay on for 6 months, have them set a goal, and pay them when they reach it in the time they said. Be careful of pre-bookings)

Is your or your unknown partners expertise in running tournaments enough to qualify you/them as an expert if the seller bails? (a casino manager may be a good partner)

Organizing and selling other Revenue streams is time consuming and requires local pavement pounding experience.

Gambling is a very touchy topic. If you make too much, or get too much attention, politicians might get mad. Know what the boiling point is of the locals. Indian tribes here in AZ operate pretty low key if you ask me...

Have you thought of a "fun gambling" company with card tables...for corporate events? These may give you a good idea on how to run these, without the purse, and help you gain experience CHEAPLY on how to manage a tournament, and gain access to potential sponsors.