Poker Players Who Are Broke
Gus Hansen went from being one of the best poker players of all time to losing over $20.000.000 and having to get a regular job as an accountant. In this post you will learn about the life of Gus Hansen and get the whole poker story about the “Great Dane” and his ups and downs. Dan Bilzerian ($200 Million) The problem with being the best is that everyone will want to know how.
First of all - If you've gone broke, you're not alone. Going broke is something that has happened to many poker players! Some lack control, some can’t resist the pit games, some play too high, some run bad and some players are just not good enough.
Nobody deserves to go from having everything to nothing, but it does happen and if it hasn't happened to yourself then it will have happened to someone you know.
Ignore the Haters
Poker Players Who Shockingly Went Broke
Rumors spread around the poker community like wildfire, and some sad individuals get off on hearing that someone else has gone broke. They obsess over other's misfortune. It sounds cliche but you must ignore the haters - their hate comes mainly from jealousy as they don't like the fact someone has succeeded more than themselves and human nature can make people enjoy watching people's demise more so than their success.
Saving
For the players who lack control and spend their winnings lavishly, expecting the money printer to keep on printing, you need to look into savings or find a way to protect your money. This could be something like a simple savings account or ISA for investing in markets or gold. Putting money aside for a rainy day helps any human.
Putting aside 10% of profits per month can start us off again if we lose everything. Yes it might mean dropping down in stakes but it's better than nothing, and like most adults we have bills, rent and families to support so this could buy us some time whilst looking for backing or even changing our career. Don't be the guy who has it all, loses it all and becomes depressed with no hope. Always have a back up plan!
Avoid Casino Games
Keep away from the pit games! These are simply not profitable and cost us money. Yes we have all had a huge winning spin of roulette or heard of a mate winning it all, but remember, Vegas was built from gamblers! Its a solid loss. There is no EV, no longterm strategy and something most poker players do when on tilt or drunk.
Ban yourself from online casinos, hide the links and tell pit bosses to keep you out! All of these things can be done by a click of a button, email or letter. Not even having the choice to do this is profitable. Have self control and when your mates are doing their brains in on the wheel sit in the bar, reward yourself with a beer for a good grind or think/discuss hands with fellow pros!
Bankroll Management
Playing outside of our bankrolls is a major no unless you are very strict with it. I say this as you might decide to risk 10% of your bankroll on a shot everytime you hit a certain point. Doing things like this is fine provided you have the control not to break the 10% rule. We all want to play the nosebleeds but we also all want to score a penalty for England.
Very few players reach the top like this so be happy where you are and realise that with hard work and dedication you might excel. Putting your full roll on a table just to say you have played there is not a good idea! Work harder than the next guy and play there when its your time.
Luck
Running bad is sadly something we cannot control. We have softwares that can make us realise if we are losing because of bad play or variance. When this is happening you have to play through it. Taking a day away from the tables does not change variance. However playing more hands does.
For example to reduce variance to near its correct state in nlh6max you would have to play 200k hands per month. So looking at this over a year you really have to be prepared for some downswings and bad streaks. I do advise you however to take a break if you are playing poorly due to running bad. Its hard not to and being human we suffer from emotions.
Not being good enough is a tough thing to admit. Sadly most of us are not. It's difficult to admit our downfall's - this is true of anything in life. It's especially true in such an independent game where we are in control of every move we make, and this makes it even tougher to walk away from. We may find ourselves great at cash games but the worst at MTTs, however we want the glory of winning titles so we chase those losing money endeavours rather than making the consistent but smaller amounts of money on the cash tables. Play what makes you the most, stick to it and let the money roll in.
Listening to other poker players
Poker Pros Who Died
A lot of poker players will brag their wins 24/7, ego can do this and we find ourselves thinking “well this idiot is winning it all then so can i”. The secret is ofcourse no one talks about their losses as much as they do their wins. So try not to take too much notice in this and just concentrate on your own game.
Staking
Going broke does not mean its the end of your career, taking up short or long term staking could be the perfect option. If you have a reputation, stats or proof that you can return profit you will be snapped up. This could be something you do to earn back a bankroll to go it alone or something you do for a lifetime.
Staking means you never have your own money in play and probably have certain controls put on your account which means you cant make the same mistakes twice or doing anything stupid. Take your time and find the staking that is right for you. A lot of staking deals will contain poker coaching or being part of a group which could be exactly what you need to power yourself forward to becoming the best possible player you can be.
Asking for help
This is the hardest thing to do in life. If you are struggling with your game, have an addiction or have done something stupid then tell someone. Even if you just ring gamblers anonymous and get it off your chest this will help you. Addictions can be cured with help but you need to be honest about it. Telling your family and friends should be the first step...especially if you share financial responsibility with them.
If you are just struggling to beat the games then hire a coach or do extra off the felt work such as reading up on it or doing database analysis. This is the boring stuff or might cost you money. But treating poker like a business should allow you to realise that sometimes you might have to invest to then make more in the future.
Helping others
There is nothing more lonely than going broke and watching everyone vanish. This is sadly the truth and its down to various reasons. Some friends were just there for the ride, some friends you lose touch with as you dont travel to events with them anymore or your personality changes. Its hard not to be down all the time and some people just dont want to hear it. If you are friends with someone and you see them going through a rough patch do something to help them.
Even just taking them for a pint to talk to now and then will perk them up and make them feel that they are not alone. Also reaching out to them if you think they will be profitable could be a great opportunity for you to make money. Also when you see your mate wasting his talent away in the pits tell them the effects of it and why they should stop doing it.
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Because there aren’t any reliable statistics, nobody knows for sure how many poker pros die broke. But it’s certainly too many.
If you’re a pro, you have a much higher probability of dying broke than members of other professions, including people who earn much less than you’re winning now. Of course, you may think it won’t happen to you, but that’s also what they thought before they got busted.
This series will analyze why it happens so often and recommend the ways to avoid it.
The Primary Cause
Most of the specific causes discussed here will have one common factor, which is arrogance.
Self-confidence, of course, is essential for a successful pro, but you shouldn’t believe, 'I’m too special to die broke.”
No, you’re not.
You’re just another talented player, and it’s happened to many talented players. Are you more talented than the legendary Johnny Moss? What about Stu Ungar, Dave ‘Devilfish’ Ulliott, and Gavin Smith? Do you win more money?
Johnny won the first two World Series of Poker championships, but ended up dependent on charity from the Binion’s family. Stu was arguably history’s greatest no-limit tournament player, but he died in a crummy motel. He was a junkie, but drugs weren’t the only cause for his tragic ending. Devilfish and Gavin each won World Poker Tour and WSOP titles, along with millions in tournaments and cash games, but Phil Hellmuth and other pros have run charity tournaments or started crowdfunding pages to help their surviving families.
Nolan Dalla covered the tournament circuit for years. In a column for Poker Pages, he once wrote: “One of the most troubling aspects of the tournament circuit is seeing how many players are constantly broke. I’m not talking about bad poker players or novices. I’m talking about names and faces everyone would recognize… If former World Series of Poker winners are broke, what chance do you have of making it on the circuit? The odds are overwhelmingly stacked against you.”
You may say, “That’s irrelevant. I know tournaments are too risky. That’s why I play only for cash.” So what? If you walk into many large poker rooms, you’ll see players who once beat big cash games struggling to survive in small ones.
In fact, the worst fate isn’t dying broke; it’s living broke for your final years.
As you read this article, ask yourself, “How often do I make these mistakes?”
They Don’t Save Money
It’s the most common and easily avoided mistake. For thousands of years wise people have spent less than they made. In the Old Testament of the Bible, Joseph advised the Pharaoh to save grain in good years to avoid starvation in the bad ones.
You can easily see arrogance’s effects. Dozens of authorities have written that losing streaks are inevitable and have recommended saving money. But too many pros think, “That doesn’t apply to me because I’ll always beat the game.”
No, you won’t. You may never have a catastrophic losing streak, but variance virtually guarantees that you won’t always beat the game. If you add in the fact that your mental abilities will decline with age, you’ll certainly have some bad years. Even if you’re a net winner, you may not cover your expenses.
They Invest Poorly
Of course, some pros do save money, but they may not invest it well. Again, we see the effects of arrogance. They think, “I’m so smart that I don’t need any advice from investment professionals.” Poker players often make amateurish investment mistakes.
They Play Other Games
Some pros essentially ship money from poker tables to craps and other unbeatable games. They may never admit it, even to themselves, but in their secret hearts they believe those games may be unbeatable for ordinary people, but not for them.
“I’m so superior that the laws of probability and lots of other rules don’t apply to me.”
Arrogance also causes some outstanding tournament players to be ‘live ones’ in cash games. When some of them make the final table, their side-game opponents cheer them on. If they have a big tournament payday, their cash game opponents will probably get a nice piece of it.
“Their arrogance prevents them from learning from their past losses. They delude themselves that this time will be different, that their true superiority will allow them to beat games that have repeatedly defeated them.” (Schoonmaker, Arrogance, the Biggest Bankroll Buster)
They Cheat On Their Taxes
Some pros cheat, and a few don’t even file tax returns. Believe it or not, honestly paying your taxes can increase your long-term security.
First, you’ll pay more social security, a forced saving for retirement. Because the cost of living allowance frequently increases benefits, most people get back much more than they contributed.
Ask some struggling older pros if they get much social security. Some will say, “No,” and a few will admit, “I don’t get any.”
Second, if you don’t pay social security for at least ten years, you’re not eligible for Medicare. Medical costs become immensely higher as you get older, and they have busted countless older pros. Some older pros have severe health problems or die prematurely because they can’t afford treatments or preventative health care.
Third, you can use programs to deduct your retirement contributions, and the interest, dividends, and other profits accumulate tax free until you retire. You’ll build a secure retirement fund.
They Don’t Buy Health Insurance
It’s another effect of arrogance. Too many pros, especially young ones, think, “I don’t need health insurance because I’ll always be healthy.” They may be right, but it’s an extremely foolish risk.
Without health insurance your entire bankroll, health, and even your life are at risk every day. Too many pros have been busted by the enormous costs of an illness or accident.
They Don’t Protect Their Health
On this issue arrogance has subtler effects. You’ve read that you should eat healthy foods and exercise regularly, but may ignore those recommendations. Some pros subconsciously believe, “Those rules don’t apply to me.”
They rarely exercise and eat badly. They may even sneer at authorities such as Dr. Cardner because they think her recommendations about diet and exercise are irrelevant for poker players.
It’s another form of arrogance. They think that poker is unique, that the rules that apply to other activities don’t apply to playing poker.
Nonsense!
We have exactly the same bodies as everyone else, and mistreating our bodies has the same effects. We can’t play well if we don’t feel well.
Worse yet, poor health has much greater effects on poker pros’ incomes than on the incomes of other professionals. The late Barry Tanenbaum, wrote: “Professional poker is a ruthless meritocracy.”
You can make a living as a mediocre salesman, teacher, lawyer, carpenter, or doctor. Most people are mediocre, but nearly everyone makes a living. You can’t survive as a poker pro unless you’re among the best.
If you neglect your health, you’ll have higher medical costs, and you won’t play well enough to pay them. You probably won’t just die broke. You’ll also die a lot sooner.
What’s Next?
Future columns will describe other causes for dying broke and tell you how to retire securely. I hope you take them seriously. They can save your bankroll, your health, and your life.
Visit Alan Schoonmaker’s website for access to his 14 books, 200+ articles, videos and podcasts.