What is Bad Beat Jackpot in Poker?

Bad beat jackpots are special bonus jackpots paid by casinos and cardrooms to players in the event that a very strong hand loses to an even stronger hand. Bad beat jackpots typically payout the largest percentage to the loser of the pot, the second largest percentage to the winner, and the remaining money is split between the rest of the table. Some bad beat jackpots are fixed, whereas others are progressive (i.e. the size of the jackpot increases over time).

Example: The bad beat jackpot is $10,000, and the qualifying hand is AAAJJ. 

Board is

Player 1 has

Player 2 has

With a typical 40/20/40 split, Player 1 would win $4,000 for holding the qualifying losing hand, Player 2 would win $2,000 for having the winner, and the remaining $4,000 is split evenly between the table. Remember to tip your dealer!