Why is table stakes used?
Table stakes has the following advantages when playing for money: • It guarantees that the winner gets paid. Since both players must have enough money on deposit to cover their maximum loss there is never a problem for the winner to collect. This is obviously an important feature. In unlimited money play, there is always a chance that the stakes could get so high that the loser would not be able to pay. • It is fair to both parties. The maximum you can win equals the maximum you can lose. If you didn’t have this rule, and each player’s losses were limited to the cash he had on hand, it wouldn’t be fair to the player with more cash he would be risking more to gain less.
