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Old 10-03-2005, 01:35 AM
jdl22 jdl22 is offline
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Join Date: Jan 2004
Location: Pittsburgh, PA
Posts: 609
Default Re: General question on bonus impact on rakeback (Party skins)

[ QUOTE ]
What are the bonuses now a days? 7x?

Best case for rakeback at 5/10 6max = 3$ rake
Assume 6 players.

$ per hand at 25% (going rate today): 12.5 cents.

($3 / 6) * 25% = .125


bonus of 100$ at 7x raked hands. 100/700 = .142 = 14.2 cents per hand.


Of course, I am assuming in this example that every hand that is raked is raked 3$ (avg rake will be less) and every hand has 6 players (avg players will be less) and your rakeback % is 25% (no clue what yours really is). You can use PT to figure out the avg rake / hand and avg players / hand. Plug in the numbers and see which is more profitable for you.

[/ QUOTE ]

I think doing the per hand calculation only makes it confusing. Assuming you are going to play the hands anyway, playthrough is not necesary to see that you should take the bonus. Copied from a reply in another thread here is a clear demonstration that all bonuses should be used:

suppose your rakeback percentage is 100p (so if you get 25%, p = .25). Suppose your MGR for the month is M and the theoretical bonus is B.
Rakeback alone you get M*p
Rakeback plus bonus you get B+(M-B)*p = M*p + B(1-p)

Since p < 1 you are better off in the second case.

In other words no matter what rakeback percentage you have (as long as it's less than 100% obviously) you are better off getting any bonuses that come along. I'm assuming that your bonuses are subtracted from your MGR and not your rakeback earnings, which is the case for the party skins.
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