GlossaryAt the table

Felted

Out of chips: a player who has lost their whole stack is felted, with only the table felt in front of them.

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What it means
Felted means busted. You have lost every chip in front of you, and all that is left at your seat is the felt of the table. To felt someone is to win all of their chips.
How it is calculated
In a cash game a felted player can buy back in or leave. In a tournament, being felted ends your run unless the event allows rebuys.
Worked example
You have 100bb, get all in with K♠ K♦ against A♠ A♣ and lose. Your stack is now 0bb: you are felted, and need a new buy-in to keep playing the cash game.
Why it matters
Even winning players get felted, because a strong hand still loses some of the time. The buy-ins kept in your bankroll are what let you sit down again.

See also: All-in, Buy-in, Bankroll, Rebuy