General question on bonus impact on rakeback (Party skins)

[SinCityGuy]

This question applies to Empire, Multipoker and Eurobet.

It's my understanding that the MGR generated during a new player signup bonus is deducted from the rakeback MGR (while the bonus is being played off). How about the reload bonuses? Does the player get his full rakeback plus the reload bonus, or is the MGR generated during the bonus play deducted from the rakeback MGR?

Thanks for any info.

[rt1]

With the sites you listed, all bonuses are deducted from MGR. Remember, this is NOT a bad thing, the bonus is going to be more profitable for you ($ per hand) than rakeback. You should NEVER pass up on a bonus because it will make your rakeback smaller...

[SinCityGuy]

[ QUOTE ]
With the sites you listed, all bonuses are deducted from MGR. Remember, this is NOT a bad thing, the bonus is going to be more profitable for you ($ per hand) than rakeback. You should NEVER pass up on a bonus because it will make your rakeback smaller...

[/ QUOTE ]

Are you sure about this? I play four 5/10 6-max tables. I think I would be losing money having the bonus deducted from my MGR, except maybe for a 5x bonus (which is extremely rare).

[rt1]

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.

[timprov]

[ QUOTE ]

Are you sure about this? I play four 5/10 6-max tables. I think I would be losing money having the bonus deducted from my MGR, except maybe for a 5x bonus (which is extremely rare).

[/ QUOTE ]

The bonus is deducted from MGR, but not all rake taken during the bonus is. It's essentially like having 100% rakeback for that portion of your rake.

As an example, if you rake $1000, 25% rakeback gets you $250. If you rake $1000 and have $200 bonus, you get $200 bonus plus $800 * .25 rakeback, for a total of $400.

It's easy to see that you should always pick up any bonuses your rakeback site has. (The one exception being if you are normally a SnG player and your time is better spent playing SnGs than whoring.)

[jdl22]

[ 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.