We had a situation with a side pot that came up tonight and no one knew the answer.

Player 1 went all in, let's say for $100. Player 2 called. Player 3 threw in $150, creating a side pot of $50. Player 2 declined the raise.

In the end, player 2 won outright. Player 1 was eliminated. Player 2 took the entire pot, less the $50 side pot that he declined to call. Player 3 took the $50 side pot back.

Is that correct? Player 3 was arguing that, in some way, he should have been rewarded for player 2 not calling his side pot. But most of us felt that we called the situation correctly. Did we? How is it handled when a player declines to enter into a side pot bet? Thanks.