Wednesday, July 29, 2009

Learn More About the World Series of Poker Payout Structure

By Jeff West

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.

Suddenly, in the mid 1970's, CBS began to broadcast winner-take-all tennis tournaments in Las Vegas. These tennis tournaments were held in Caesars Palace. The winner would win $100,000. Tennis players Rod Lacer and Jimmy Conners were splitting the prize money. It was suppose to be winner-take-all. They both confessed to what they did. This left CBS with a hefty fine from the FCC and issuing a public apology. Sporting events were being shunned, especially the World Series of Poker.

Splitting the money between the players was over in 1978 when Benny Binion told everyone that he was paying the top five. Benny did this cause he realized that it was only a matter of time before the FBI would conduct an investigation into the payouts at his tournament.

In the 1978 WSOP Binion kept his word and paid out the top 5 spots. Binion soon realized that with an overwhelming growth in entrants that he was going to have to pay out more spots to keep new players coming in. The then current payout of the top 5 slots would last until 1981, when Binion then told players it would be paid the top 9 spots.

World Series of Poker continued to grow each year, so did the players who got a payout. Chris Moneymaker had a shocking victory in 2003, which resulted in one of the greatest leaps in World Series of Poker history. In 2004, 225 players were paid. In 2005, the numbers jumped ever higher with 560. An Earth shattering record of 873 players in 2006.

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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