JRE #526 – Isaac Haxton

7/22/2014

https://open.spotify.com/episode/0wp99aTWULqCoazTaSuaKo

#526 – Isaac Haxton

This podcast delves deep into the world of professional poker with Isaac Haxton, a world-renowned player. Topics range from the nature of poker as a game of skill and strategy, to the financial intricacies and ethical debates within the poker community. We also explore the influence of technology on the game, the mind-bending world of online poker, and the unique lifestyle of professional poker players.

Provocative and thought-provoking themes emerge throughout the conversation, including the role of risk management and decision-making in both poker and life, the nature of cognitive enhancement and the use of smart drugs, and the ethical quandaries associated with online gambling and the influence of powerful lobbies.

Poker as a Game of Skill

1. While acknowledging poker involves money at stake, Haxton emphasizes that it’s not about blind chance, but rather a game of strategy, intelligence, and information. He distinguishes it from gambling that relies solely on luck.
2. He emphasizes the importance of identifying and exploiting edges, making calculated decisions, and managing risk effectively. This involves understanding your opponent’s play style, adapting your own strategy, and making the most of the opportunities presented.
3. Haxton contrasts poker with chess, highlighting poker’s more forgiving nature and ability to recover from slight oversights. He posits that his brain is better suited for poker’s strategic nuances and ability to adapt.
4. He discusses the concept of “risk management” in poker, emphasizing that it’s more than just playing individual hands. It involves strategically managing your bankroll, choosing the right stakes, and setting yourself up for maximum risk-taking when the opportunity arises.

The World of High Stakes Poker

1. Haxton details the practice of “selling action” in high stakes tournaments, where players take on investors who share the risk and rewards of the game. This creates a complex financial ecosystem within the poker world.
2. He discusses the common practice of “chopping” in poker tournaments, where players agree to divide the prize pool according to their chip stacks rather than playing out the entire tournament. While this practice is met with resistance from some spectators, Haxton argues that it’s a practical and fair solution.
3. Haxton highlights the ethical complexities surrounding “backing deals,” where players receive financial support for a tournament and agree to share their winnings. He recounts the story of Jamie Gold, a World Series of Poker champion who faced a lawsuit from a backer, demonstrating the potential for conflict within this system.
4. He explains the “winner take all” nature of major tournaments, where even a skilled player has a relatively small advantage over weaker competitors due to the sheer number of participants. This contributes to the potential for surprising outcomes and the emergence of unexpected winners.

Cognitive Enhancement in Poker

1. Haxton discusses the prevalence of cognitive enhancers, such as caffeine, Adderall, and Ritalin, among poker players. He acknowledges that these substances can provide a temporary edge, but also stresses the importance of understanding their potential risks and side effects.
2. He highlights the importance of sleep and nutrition for cognitive function, emphasizing that providing your brain with the necessary resources is crucial for optimal performance.
3. He explores the ongoing research into cognitive enhancing supplements, such as Alpha Brain, and the growing market for such products. He emphasizes the need for skepticism and encourages listeners to research the evidence behind these supplements.
4. He discusses the ethical considerations surrounding the use of cognitive enhancers in competitive contexts, particularly the potential for unfair advantage and the blurry lines between performance enhancement and cheating.

The Psychology of Poker

1. Haxton delves into the intricacies of “tells” in poker, explaining how players use physical cues, such as posture, breathing patterns, and facial expressions, to gain insight into their opponents’ hands. He describes the subtle and often unconscious nature of these signals.
2. He discusses the importance of “poker face” and the challenge of both reading and faking tells effectively. He highlights the constant battle between deception and observation that unfolds at the poker table.
3. Haxton addresses the question of whether there’s a “psychic” element to reading tells, suggesting that while there’s no evidence for psychic abilities, there’s a level of intuitive understanding that develops with experience and observation.
4. He explores the connection between poker skills and social interaction, arguing that the ability to read people and detect deception at the poker table can translate into real-world scenarios, enhancing social awareness and perception.

The Evolution of Poker

1. Haxton chronicles the evolution of poker, from its early days of home games to the rise of televised tournaments and the explosion of online poker. He attributes the growth of the game to the televised exposure of players’ hands and the increased accessibility of online poker.
2. He discusses the influence of online poker, particularly the increased speed of the game, the higher volume of hands played, and the resulting increase in competition among top players.
3. He describes the regulatory crackdown on online poker in the United States, the legal complexities surrounding the game, and the ongoing efforts to legalize and regulate online poker in various states.
4. He details the current legal landscape of online poker, the limitations of state-based regulation, and the potential for California to become a major hub for online poker if it legalizes the game.

Poker Player Lifestyle

1. Haxton shares his personal journey from college dropout to professional poker player, describing the initial skepticism from his parents, the financial success he achieved, and his decision to return to school for a degree in philosophy.
2. He discusses the unique lifestyle of professional poker players, the long hours of play, the constant travel, and the challenges of managing risk and volatility. He emphasizes the importance of mental resilience and emotional stability in navigating this lifestyle.
3. He describes his experience living in Vegas, a hub for poker players, and his subsequent move to Malta, a tax-friendly destination that has become a haven for online poker players.
4. He shares his thoughts on the future of poker, acknowledging the uncertainty surrounding the game’s trajectory, the impact of technology, and the ongoing legal battles surrounding online poker.

Memorable Quotes:

1. “It’s gambling in the sense that on any given day, you win or lose money. If you’re playing for high stakes when it was a bunch of money, but it’s not gambling in the sense that it’s outside of your control.” – Haxton clarifies the nature of poker as a game of skill, not blind chance.
2. “You aren’t presented with constant unlimited opportunities to get an advantage. So when you are presented with 1, you have to … There’s a certain amount of courage that’s involved in playing the game of poker.” – Haxton emphasizes the need for bold decision-making and risk-taking in poker.
3. “In terms of encouraging risk management. The, like, risk management thing comes in before you’re actually playing a hand. And then in the course of playing a hand, you have already made decisions that put you in a position to be comfortable taking the maximum amount of risk that you could be confronted with after that point.” – Haxton explains the importance of proactive risk management in poker.
4. “I think that even if I hadn’t found poker and decided to make a career of that, that I would have made myself get through undergrad computer science, and somewhere around grad school or early into a career doing that, I would have realized it wasn’t doing it for me.” – Haxton reflects on the importance of finding a career that aligns with your true passions and interests.
5. “The biggest and best sites, I think, are doing a pretty good job at enforcing against [bots]. You can do various things to detect when it’s a bot rather than a human playing and shut it down.” – Haxton acknowledges the ongoing battle against bots in online poker and the various measures used to detect and prevent them.