A system and method of conducting a poker game in a manner which contends with bad beats. It comprises the steps of: selecting a distinct percentage (e.g. 70.0% or 80.0%) as a Bad Beat Cutoff %; selecting a specified amount as the Bad Beat Amount; conducting the selected poker game variant in accordance with conventional rules of play; calculating and recording the win probability of each player if an all-in bet occurs; awarding the Bad Beat Amount to any remaining player that lost despite having a win probability greater than the Bad Beat Cutoff % at the point of said all-in bet; and awarding the remainder of each pot to the high hand. By contending with bad beats in all-in situations, the systems and methods disclosed herein will help alleviate bad beat frustration and make poker more enjoyable for many players.