The Role of Skill Versus Luck in Poker: Evidence from the World Series of Poker

Steven Levitt () and Thomas J. Miles

No 17023, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In determining the legality of online poker – a multibillion dollar industry – courts have relied heavily on the issue of whether or not poker is a game of skill. Using newly available data, we analyze that question by examining the performance in the 2010 World Series of Poker of a group of poker players identified as being highly skilled prior to the start of the events. Those players identified a priori as being highly skilled achieved an average return on investment of over 30 percent, compared to a -15 percent for all other players. This large gap in returns is strong evidence in support of the idea that poker is a game of skill.

JEL-codes: K23 K42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-lab, nep-law and nep-spo
Date: 2011-05
Note: LE
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