[_dave_]

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it's not just the fact that to a bad player it is 'the illusion' of making more money.

for the tight-agg player you really ARE making more money.


For a TAG, 25% rake-back is better than an across-the-board 25% rake-reduction.
Your opponents are playing more hands and you are making the additional rake-back off of the hands that you AREN'T playing.


I am guessing that 25% rake-back would still be better than 30% rake-reduction for many players.

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People who use Poker Tracker, and also who know their MGR, are able to verify the validity of this statement.

For me it was true last month.

I played approx. 25,000 hands of poker on a popular site. I played about mainly at $25NL, a little $50NL, and the rest taking shots at $100NL.

I played like a nut pedalling nit (TAG). I have stats of VPIP 13 / PFR 6 / AGG 2.35 on average.

In Poker Tracker's "General Info -> Total Rake" column, I have paid just under $580 of rake. My MGR was significantly higher than this - not large considering some of the players on these forums, but large enough for me - just over $710.

Therefore, a 30% rake reduction would net me:
580 * 0.3 = $174

A 25% MGR based overhead reduction plan pays me:
710 * 0.25 = $177.50

The difference is tiny, but for my play last month, a 25% MGR based player rewards scheme pays $3.50 better than a 30% rake cut across the board.

If both numbers are the same, the difference is greater - +$39 if both are 30%, +$32.50 at 25%.



I'd love to know the results from some of the high volume players round here - are these calculations still valid for the play at higher levels?


Dave.

EDIT:

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Man, am I glad I used the Notepad trick before i clicked submit on this post [img]/images/graemlins/smile.gif[/img]