Cash Game vs Tournament

The two main poker formats: cash games use chips worth real money that you can leave anytime, while tournaments use non-cashable chips and play down to winners for a prize pool.

Definition

Cash games (also called ring games) use chips that directly represent money; blinds stay fixed, you can buy in and cash out at any time, and each hand stands alone. Tournaments charge a fixed entry, give everyone tournament chips of no direct cash value, raise the blinds on a schedule, and eliminate players until a few finish 'in the money,' splitting a prize pool by finishing position. The formats reward different skills: cash play emphasizes deep-stacked precision and steady hourly edge, while tournaments emphasize adapting to changing stack depths, survival dynamics, and ICM near payouts. Importantly, in both formats the operator typically removes a rake or entry fee, an edge that means most recreational players lose money over the long run.

Worked example

A player joins a 2/5 cash game, buys in for 500, plays two hours, and cashes out whenever they like; the same player instead enters a 100-buy-in tournament and must keep playing, through rising blinds, until they either bust or reach the paid places.

Why it matters

Learners must pick a format that suits their time and temperament, since strategy and variance differ greatly. Professionals specialize because the skill sets, bankroll requirements, and variance profiles of cash and tournaments diverge sharply.

Related

Note: Rake and fee structures differ by operator and stake; the general point that the house takes an edge holds broadly, but exact amounts vary.