Poker Superstars : Skill or Luck ? Similarities between golf — thought to be a game of skill — and poker

The popularity of poker has exploded in recent years. The premier event, the World Series of Poker Main Event, which costs $10,000 to enter, has increased from a field of six in 1971 to 839 in 2003 and 5,619 in 2005. Broadcasts of poker tournaments can frequently be found on television stations such as ESPN, Fox Sports, the Travel Channel, Bravo, and the Game Show Network. These tournaments consistently receive high television ratings. Poker also has garnered the attention of many infl uential academics. It served as a key inspiration in the historical development of game theory. John Von Neumann and Oskar Morgenstern claim that their 1944 classic, Theory of Games and Economic Behavior, was motivated by poker. In the text, they described and solved a simplifi ed game of poker. Other famous mathematicians/economists such as Harold Kuhn and John Nash also studied and wrote about poker. For all its popularity and academic interest, the legality of poker playing is in question. In particular, most regulations of gambling in the United States (and other countries) include poker. In the United States, each state has the authority to decide whether it is legal to play poker for money, and the regulations vary signifi cantly. In Indiana, poker for money is legal only at regulated casinos. In Texas, poker for money is legal only in private residences. In Utah, poker for money is not legal at all. The popularity of online poker for money has raised further questions about the right (or ability) of states to regulate this activity. At the national level, the U.S. Department of Justice recently stated that the Federal Wire Act (the Interstate Wire Act) makes online casino games illegal (in addition to sports wagering), although the U.S. Fifth Court of Appeals subsequently ruled that interpretation incorrect. That said, there are heated arguments on both sides of the regulation debate. Those in favor of regulating argue that poker is primarily a game of luck, such as roulette or baccarat, and that it should be regulated in a manner similar to those games. Those in favor of lifting regulations argue that it is primarily a game of skill—a sport such as tennis or golf—and it should not be regulated at all. So, is professional poker a game of luck or skill? Several ‘star’ poker players have repeatedly performed well in high-stakes poker tournaments. While this suggests skill differentials, it is far from conclusive. In how Poker Superstars: Skill or Luck?