To have "skin in the game" is to have incurred risk (monetary or otherwise) by being involved in achieving a goal.
In the phrase, "skin" refers to an investment (literal or figurative), and "game" is the metaphor for actions on the field of play under discussion.
[3] However, William Safire disputes that Buffett is the source of the phrase, pointing to earlier instances.
According to the economist Joseph Stiglitz, there exists a correlation between excessive "skin" and lower returns.
Many banks and other financial institutions bar employees from having any "skin" where client capital is managed, principally to address the issue of front running and commingled funds (MF Global).