Watson hit to 10 feet from the hole at the fourth and Nicklaus made the putt for three skins and $90,000.
The par-three ninth was worth five skins and $180,000. Player missed from 18 feet, but Nicklaus sank a 15-footer for birdie. Zoeller was short from five feet.
The format is alternate-shot. The final nine holes, worth $470,000, will be played Sunday.