To counterfeit is to mimic something. If a product is described as counterfeit, it is either a fake product or replica of a real product, often unauthorised. In the gambling environment, however, counterfeit can take on another, similar meaning. To counterfeit is to compromise the value of a player’s hand due to its duplication by board cards.
To counterfeit is to make a player’s set of cards weaker, even though the hand has technically been improved. In flop games, such as Omaha Hold’em poker, counterfeiting can happen regularly because of the wide variety of possible hands.
An example of having counterfeited is as follows: if, during a game, the player holds the 7♦ and the 6♦, and they then arrive at the turn with the board displaying the 7♣, A♦, J♦, and 6♣, this would give the player two pairs (in this instance, sevens and sixes). This is a strong position to find oneself in.
Now, the river provides J♣, and the player has gained a pair of Jacks and a pair of sevens, which enhances the value of hand even further. However, any other player now holding a Jack or an ace has triumphed; if they have an ace, they have a pair of aces and a pair of Jacks, and if they have a Jack, they now have what is referred to as ‘trips’.
So, whenever an outcome means that an opponent’s hand has beat your own due to the sheer amount of hand possibilities, your hand has been counterfeited.