Derek Walters acquires shares in the principal World Series of Poker through the Individual Chip Model
In the world of high-stakes poker, a new investment trend is emerging – buying Independent Chip Model (ICM) shares in poker tournaments. This strategy, which assigns a real monetary value to tournament chips, offers benefits and challenges for both players and investors.
Brandon Izzo, a participant in two WSOP finalists, recently experienced this firsthand when an investment fund purchased a piece of his action during the 2025 World Series. The fund, boasting a strong team of investors from the US, UK, and Europe, managed to gather a million dollars, with one investor personally investing $100,000, aiming to collect between half a million to a million in total.
The fund's goal is to acquire ICM or near-ICM shares of players in late stages of tournaments. On Day 6 of the tournament, Brandon Izzo, with 2.24 million chips, worth $227k in ICM, and ranked 46th out of 522 players, offered 10% of his shares to the fund for $31,500. The investment was determined to be positive.
The benefits of buying ICM shares are numerous. For players like Brandon, understanding ICM improves strategy, particularly in late stages where chip value is nonlinear relative to cash prizes. It helps in evaluating risks like going all-in or folding before critical payout jumps or the bubble. For investors, ICM shares allow more precise valuation before investing in a player’s tournament position.
However, the complexities and inherent tournament variance present challenges. ICM calculations are mathematically complex due to variable factors, making real-time exact calculation difficult. Players typically need training tools or solvers to practice these decisions, and investors must trust these models to value shares correctly.
The fund started direct negotiations for buying shares on the 7th day of the tournament, eventually purchasing shares from three players for a total of $75,000. No sellers were found on Day 8 or before the final table.
The Main Event is a marathon, and free time is one of the most valuable resources for its participants, who need to communicate, recover, and meet their basic needs between game days. Despite the busy schedule, Brandon Izzo's sale of 10% of his shares to the fund was a significant move in the evolving landscape of poker tournaments.
References:
[1] "Understanding ICM in Poker Tournaments: A Comprehensive Guide" [2] "Investing in Poker Tournaments: The Role of ICM" [3] "Late Registration Strategies in Multi-Table Tournaments"
I'm not sure if this investment strategy would translate well to casino-and-gambling or sports, as the inherent tournament variance and complexities may differ in those areas. Nevertheless, the successful ICM share purchase from Brandon Izzo during the 2025 World Series could pave the way for potential finance opportunities in these sectors, provided that appropriate training tools or solvers are developed to accurately evaluate risks and player performances.
