Makeup

Overview

Makeup is a financial term used in poker staking arrangements. When a backer (or investor) funds a player's buy-ins or expenses, the player agrees to repay any losses incurred before sharing profits. The cumulative losses that the player owes to the backer is called makeup. Once the player wins, the money first goes toward reducing makeup; only after makeup is cleared does the profit split (typically 50/50 or other agreed percentages) begin.

How Makeup Works

• When a player loses money while being staked, that loss is added to makeup. For example, if the backer puts up $1,000 for a session and the player loses $500, makeup becomes $500.
• If the player then wins $800 in the next session, the first $500 of the win repays the makeup, leaving $300 in net profit. That $300 is then split according to the staking agreement (e.g., 50/50 → player gets $150, backer $150).
• Makeup is typically tracked independently for each staking arrangement. It does not carry over between different backers or deals unless explicitly agreed.

Purpose of Makeup

Makeup protects the backer's investment by ensuring they recover losses before the player takes a share of profits. It aligns incentives: the player has motivation to win back losses and the backer has downside protection. Makeup is common in high-stakes poker, online staking, and tournament backing, where players may face variance and need capital.

Example Scenario

• Initial stake: Backer gives Player $2,000 for cash games.
• Session 1: Player loses $1,200 → makeup = $1,200.
• Session 2: Player wins $1,500 → first $1,200 repays makeup, profit = $300. Split 50/50: Player gets $150, Backer $150. Makeup is now $0.
• Session 3: Player loses $800 → makeup = $800.

Related Terms

• Staking: The practice of a backer funding a player's play in exchange for a share of profits. Makeup is a component of staking.
• Backer: The investor who provides the capital.
• Horse: The player receiving the stake.
• Profit Split: The agreed division of net profits after makeup is cleared.
• No-Makeup Deal: A rare arrangement where losses are not tracked and profit is split from the start (riskier for backer).