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Old 10-29-2005, 09:13 PM
chunk chunk is offline
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Join Date: Jan 2005
Posts: 38
Default Re: The inflection point on rakeback with Stars and Party

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In a post in the internet forum (Dear Lee Jones), we get the following:

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For example, our (PS) rake is lower by:

39% for $.50/$1
20% for $1/$2
16% for $2/$4
14% for $3/$6
10% for $5$10

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This, however, does not substitute rakeback.

Given varying rakeback percentages, at what point is it best for a player to move from stars to party? I've discussed this with some friends and the general consensus is when you make the leap from 3/6 to 5/10, but I was hoping if somebody could crunch some numbers and get a better idea.

This obviously depends on the rakeback percentage quote you get but generally I'm hearing numbers around 25% for Party.

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Ok, I crunched some numbers. My sample size is small though, so someone with a larger sample should have a better idea. The basic idea, though is that for a tight player rakeback >> "reduced rake".

Here's a look at 1/2. Using PT stats over 11,655 hands played and 14,736 observed, and assuming a %20 discount at Stars.

rake paid per hand at PP $0.040
rake attributed at PP $0.055
assumed rake paid at PS $0.032
rakeback required to compensate, 14.63%

and for 2/4. 10619 played and 28080 observed. 16% discount

rake paid per hand at PP $0.065
rake attributed at PP $0.102
assumed rake paid at PS $0.054
rakeback required to compensate, 10.18%

BTW my vpip is 16%, and this number should significantly effect the results for anyone who is much different that that.
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