Online poker is big (were talking billions big) and despite all the legal troubles facing it, continues to be very popular. So popular that thousands of people play online poker as a full time job. I won’t get into the discussion of how poker is a skill game just yet, so don’t tempt me!

As with most forms of cash flow there are many different tiers of income levels. At the top you have professionals who are bringing in seven figure salaries. At the bottom of the profitable spectrum there are people bringing in around $1/hr (though these people are mostly hobbyists playing for fun). Then of course there is the people who lose money, this consists of the majority of players. Approximately two thirds of online players are losing players (which is a scary thought).

The idea of playing poker on the side for extra cash, may seem a bit absurd at first but in fact it is very realistic. Obviously there is a learning curve to the game that some people can never get over. Most beginning players will start out losing, but if you continue to learn and adapt to players it can easily be an additional source of money. There are of course some bad things about playing online poker, such as; gambling addictions, the variance, risk and of course the dreaded rake. However there are some upsides such as; play whenever you want, enjoy yourself while making some extra cash, compounding profits (I’ll explain below).

Compounding profits (yes, I just made up the term) is way moving up stakes works. A example will illustrate this much better. Say you are a winner at the $0.05/$0.10 no limit tables and eventually you build your bankroll (your lump sum of cash) up to the point where you have enough money to play at the $0.10/$0.25 tables without significant variance. Your previous profits have allowed you to move up stakes where you are able to win larger amounts, so not only did those profits push cash in your pocket but they allowed you to make larger amounts in the future.

I consider online poker similar to things like Forex trading and day trading. And as always if your thinking about going this route make sure you do your due diligence! This is definitely a more risky way to secure additional income, and is no where near passive, but it is fun. And a hint to all new players, Google Rakeback before signing up at a poker site.

Note: Up until recently I spent a lot of my spare time playing online poker, I would make around $5-10/hr. However I found myself playing far too much, and decided to take a long needed break.

This article was featured in the Carnival of Personal Finance #136 hosted by Green Panda Treehouse. For more information please visit the Carnival of Personal Finance.

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Filed under: Alternative Income