Poker Dictionary
Sunday, July 21, 2024
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Return on Investment

  1. Noun

    The amount of money or chips that a particular action has generated or will generate in the long run and that is in excess of a player's own contributions; expectation minus investment. Expressed as a percentage of the player's contribution.

    ADDITIONAL INFORMATION: Example: If a player enters a tournament for $20 and wins $30, the player has made $10 profit. The $10 profit divided by $20 initial investment is a return on investment of (10/20) = 50%. A positive return on investment represents a win and a negative return on investment represents a loss.

    EXAMPLE: "I have a positive return on investment in lower limit games, but when I move up to higher limits I have a difficult time with the tougher competition and end up having a negative return on investment. Careful record-keeping gives me the information I need to know what games give me the maximum ROI."

    APPLIES TO: Online and Land-based Venues

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