The dealer deals two cards to each player. If both cards in the player's hand match, then that player has a pair. Otherwise, the hand is called simply by the high card between the two. For example, a King and an eight would be a King-high. Beginning to the left of the dealer, each player decides whether or not they will go "in" or "out". Those players who are "out" have no further stakes in the game unless it is re-dealt.
Of those players who are "in", the one with the best hand collects the pot while the others who called "in" throw into the pot the amount of money that the winner has collected. If the pot was worth 50 cents, then the winner collects that 50 cents while the other players who called "in" but lost EACH put 50 cents into the new pot. If three players go "in", then one player collects and two players match the pot, which would now be a dollar.