Does three of a kind beat two pairs?

I have never been able to master the basics of poker, which probably explains why I get invited to a lot of neighborhood poker games these days.

Considering my lack of poker talents, it is amazing that I find myself glued to the television watching the World Poker Tour and other variations of the Texas Hold 'Em games that have become all the rage. More than 5 million people a week tune in as an interesting cast of characters play for big cash prizes. That is more people watching poker than cable business news.

Some would say that the surge in poker popularity has single-handedly help revive the fortunes of Las Vegas. On a recent trip to Sin City, I was told that the dealer schools can't train people fast enough to meet the demand to open more poker tables in the casinos.

Poker has also had an impact on the big casino called Wall Street. Such companies as MGM Mirage, Mandalay Bay, Caesars Entertainment and other publicly traded gambling operators have seen their stocks hit new yearly highs.

And, even the World Poker Tour wants to play in the big game.

Lakes Entertainment, which owns the tour, is forming a separate company and will hold an initial public offering of stock. No date or price has been set for the offering.

Interestingly, the one gamble that hasn't paid off on Wall Street comes from none other than The Donald. Once a $30 stock, shares of Trump Hotels recently traded as low as $1.50. Trump was among the first players to make a big bet on Atlantic City as a gambling mecca. He recently cashed out his holding and turned the operations over to a private investing firm that is trying to renegotiate nearly $2 billion in debt. In other words, Trump just told himself, "You're fired."

The popularity of poker has resulted in bigger purses at the tournaments. In 2002, the first year of the World Poker Tour, total prize money was $10 million. It tripled to $30 million in the 14 tournaments the next year, and may triple again in 2004.

Poker now competes with other sports for attention. The tour even unveiled its first Walk of Fame to honor the games legends, including such people as Doyle "Texas Dolly" Brunson and Gus "The Great Dane" Hansen. Even James Garner, famous for his role as gambler Brett Maverick, was recognized at the Commerce Casino in Los Angeles.

The similarities between poker and stocks are obvious. Both are highly speculative, and winning requires a degree of knowledge. Most professional poker players will tell you that they never let emotions affect their decisions. And, they know that it is just as important to cut your losses and compound your winnings. Good investors must also recognize when to fold and when to hold.

By the way, I found out that three of a kind does beat two pairs.

But, it was an expensive lesson.

George Chamberlin is a regular contributor to the North County Times and also is a TV and radio commentator. Contact him at george@moneyinthemorning.com.