Bankroll investor

[moo321]

This sounds like an absolutely horrendous arrangement.

Anyone on here want me to stake them? I get equity equal to my investment, a 25% off the top royalty of winning sessions. If we win, I get royalties AND equity, and if we lose, we split the losses equally.

[NotEnoughHeat]

I recently accepted an outside investment into my bankroll. The terms are that they own 25% of my bankroll and there is a 25% royalty on my session winnings until equal to the amount of the original investment. Then the royalty goes away. They can cash out anytime they like for 25% of the total bankroll or I can buy them out for the same terms as the majority share holder.

Has anyone else ever done this? The reason I did it was to finally get away from the $25 tables and get into the high roller room. I needed my bankroll to hit a certain level before I made the move to protect myself from disaster. I also know this investor extremely well and they aren't interested in learning blackjack for profit. Well they aren't interested in blackjack but are interested in the profit part.

[Disclaimer, I've only read the first page of this thread, so some of my questions may have already been answered]

I've never played on a shared BR but I have put a decent amount of thought into team play structures. I think you left out, or at least only implicitly suggested, an important detail. How much did the investor contribute to the BR, I would assume 25% but I'd just like to confirm. With a fixed 'royalty' as you say it's a good deal for you if he contributed larger than 25% but it's a bad deal for you if he contributed less.

As others have said, the royalty is a bit concerning. What's also different than what I would accept myself, is that you're giving an investor 0 risk on his investment. While this is a good thing for him and you can do so if you're feeling generous or really want this arrangement to happen, I'd personally prefer any party with a money investment to carry a risk proportional to their equity (read: share of the) BR. I don't think it fair that if you hit bad swings, you take 75% (assuming he staked 25% of the original BR) of the loss, but for a time, if you win, you don't take 75% of the gain. You only end up getting ((100-0.25)*0.75*100=) 56.25% of the gain.

This sounds like an absolutely horrendous arrangement.

Anyone on here want me to stake them? I get equity equal to my investment, a 25% off the top royalty of winning sessions. If we win, I get royalties AND equity, and if we lose, we split the losses equally.

My point exactly. I should learn what the word 'concise' entails or else I might end up as a second T3 with as much of the hate and a fraction of the genius LOL

[NotEnoughHeat]

If playing correctly you should win about 60% of the sessions and lose about 40%.

Just making sure there isn't some immutable constant I'm not aware of, but doesn't this depend on the mean and SD of the length of your sessions?

I would think 1000 exactly 30 minute sessions, 1000 exactly 12 hour sessions and 1000 wild and weird distribution of 0.5-12 hour sessions have slightly different win percentage expectations. If you reduced your sessions to 1 hand I would expect the win rate of your session to be easily calculated by using the win rate of the type of one hand session you use (play all, positive only, >= +3, etc.).

[Cloudstreets7087]

The first part of the investment agreement has been reached. I have paid out $1000 in royalty today. Now the investor owns 25% of my bankroll and no more royalty. When they gain another $1000 with their 25% equity, I will buy them out. So far it has worked very well for both of us.

[SiMi]

CS
Thanks for the update! Good job! Keep us posted on how it goes.
How has it been playing in the HL rooms? Any thoughts you're willing to share?

Best,
SiMi