Guarantee Meaning – A Guaranteed Prize Pool for an Event or Competition
The guarantee is short for a guaranteed prize pool, a pre-set reward amount that the poker tournament organizer sets.
Poker tournament guarantees are a great way to ensure participation in the competition, as more players will sign up if they know there’s a set minimum prize pool that will be paid out no matter what.
For example, let’s say that a poker tournament has a guaranteed prize pool of $100,000, and players have to pay $200 to enter the tournament.
If 400 people apply, their combined amount is $80,000. But, as the tournament has a guaranteed prize pool, the organizer will be obliged to chip in with the additional $20,000 to meet the guarantee.