Explanation of Overlay
To grasp the concept of overlay , it's essential to first comprehend the mechanics of announced “guarantee” tournaments. The poker network pre-sets a certain prize pool before knowing how many participants will register. Should there not be enough players to reach the full prize pool, the network steps in to make up for the shortfall.
The extra amount added by the network to complete the prize pool is known as overlay . This is beneficial for the participants since, despite the prize pool remaining unchanged, the competition is less intense, giving players a better chance at securing the top payouts.
Example of Overlay used in a sentence -> Savvy players are aware that tournaments offering significant overlay tend to yield higher profits over time.
Incorporating Overlay into Your Poker Strategy
Consider a scenario where a tournament guarantees a prize pool of $5,000 with a buy-in of $100. Simplifying things by excluding poker room fees, this means that 50 players need to participate to create the total prize pool. Any additional players beyond 50 will simply increase the pot size further.
If we check the tournament lobby and observe that it is set to commence with only 30 players registered, this indicates a current overlay . In this case, the poker room is contributing an extra $2,000 to the prize pool since the buy-ins have only accumulated to $3,000. When there is a substantial overlay , the tournament represents a great opportunity for players; even less skilled competitors might achieve a favorable win rate in such advantageous circumstances.
It's important to remember that many guaranteed tournaments allow late registration. If the tournament kicks off while there’s a generous overlay , it could entice several latecomers who are looking to capitalize on the situation. Consequently, by the time the late registration period concludes, the overlay might completely disappear. Therefore, just because a tournament starts with an overlay doesn’t guarantee it will remain throughout the duration of the event.
Often, analyzing historical patterns is the most reliable way to identify potential overlay . Some tournaments might regularly exhibit overlay if their guarantees are unnecessarily high, if there’s low interest in the event, or if the network encounters sluggish traffic. For example, if a specific tournament consistently showcases valuable overlays , this typically indicates it will offer high value to participants.
See Also
Tournament , Buy-in , ICM , Structure