Poker – a game of luck or skills. Review of theoretical and empirical studies and conclusions for law regulations

Whether poker is a game of luck or skills remains open to debate, both in Poland and abroad. The answer to this question determines if poker is classified as gambling and potentially penalized. This paper provides the merits to answer this question based on the review of theoretical, simulation-based, experimental and empirical studies devoted to the game of poker, and in particular – Poker Texas Hold’em. The results univocally show that although there is a component of chance in poker, it is the skills that matter in the long run (to the similar extent as in sports). Quantifying chance in poker is also discussed – the minimum amount of time required for skills to statistically outweigh chance. In conclusions, I propose a more pragmatic approach to regulation – based not on classifying poker as a game of luck or a game of skill, but rather taking the cost and benefit analysis into account, which includes externalities and consumers’ welfare change associated with either of the solutions – legalizing or delegalizing poker.