Bankroll management in Sit and go poker tournaments

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Published: Oct 28, 2016
DOI: https://doi.org/10.5750/jgbe.v10i2.1096
Keywords:
Bankroll management gambling Sit and go poker tournaments Kelly criterion poker strategy game theory

Main Article Content

Björn Lantz
Chalmers University of Technology

Abstract

This study focuses on Sit and go poker tournaments, where a player with an advantage over her opponents needs to manage her bankroll properly. The study applies the Kelly criterion to games that have several outcomes, where the organizer charges a rake. The premise is that an advantage itself is not enough for a poker player to play at any stakes, because risking too large a fraction of the bankroll will result in a negative expected growth rate, even though the game itself is characterized by a positive expected value. Accordingly, this study uses a formula-based approach to address the challenge of identifying games where the player’s current bankroll has the highest expected growth rate, while also considering differences in the rake.

Article Details

Issue
Vol. 10 No. 2 (2016)
Section
Articles
Author Biography

Björn Lantz, Chalmers University of Technology

Björn Lantz, PhD, is an Associate Professor of Economic Analysis at Chalmers University of Technology, Sweden.

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