Oct 16 2007

Are Bonuses Worth Doing if You Have Rakeback?

Published by at 10:40 pm under Poker

I was recently asked this question and while I ran through a brief comparison once in a thread on BTP, I never did research it fully. This time the question concerned Cake Poker. Since I recently signed up and did my initial deposit to get the bonus for that, I thought it would be a good time to find out if I was wasting my time getting epass setup to be able to do this.

So, last night when a late episode of Mythbusters came on where they were busting baseball myths, I decided to run some calculations while I stayed up way to late and figure it out. While I knew the affects of the number of players at the table had on rakeback, I wasn’t aware of how great the affect was. So I included that in my research too.

This calculation would be similar to any site that does a dealt hands rake system like Cake (the site I used for my research) and Full Tilt. Some other sites use a contributed rake system where you need to have actually contributed to the raked pot instead of just being dealt a cards in the pot. Both of these sites count $1 of rake as 1 player point as well.

At the sites mentioned, the bonus that is accrued is subtracted from the gross rake that is credited to the player. The gross rake is the portion of the total rake that is distributed to each player who were dealt cards in the hand. So if there was $3 rake and there are 6 players, each player gets credit for $.50 as long as they were dealt cards in the hand. Likewise, if there were 10 players at the same $3 raked table, each player got credit for $.30 of rake. As you can see, the fewer the players, the greater the amount of rake you get credited for the rake that is collected.  So here is the chart.

rakeback_calc

What I had always assumed would happen is that since the amount of money that is being subtracted from the gross rake is the same and it’s that is done prior to calculating the rakeback, that it would be a standard deduction of money after that rake is calculated. In other words, when $10 or rake is deducted from the gross rake, that it will be the same percentage of that as the rakeback percentage that would be lowered from the rakeback earned. Therefore since only a percentage of that bonus accrued is affecting the rakeback, that of course it’s works out to a greater returned value to the player when considering both rakeback and bonus. What are you fucking stupid?
What ended up being interesting, though, was how the number of players affected how much rakeback you would accrue. In the example above, I used 166 player point earned as the base since that equates to $10 in bonus accrued and made the calculations easy. The blue line is the typical amount of rakeback that you would get when you earn 166 player points at Cake. The red line is the rakeback after it’s affected by the bonus deduction, in the case of cake, it was $3.30 or 33% of the $10. The orange line is the total earned with rakeback and bonus, which is (of course) $10 more than the red line and $6.70 more than the blue line.

As you can see, you earn $5.48 of rakeback per 166 points earned if you play at a full ring table of 10 players. This is irrelevant of the game, stakes or any other change in the table other than the number of players since all those games use the same rake/point value. When you get a bit more brave and choose to play the 6 max games (my preferred structure), you gain a much more tempting $9.13 per 166 points. And when you step all the way up to playing HU for rollz, yo, you get an amazing $27.39 per 166 points. Of course you are contributing to a much larger portion of the rake then too since, well, it’s you and another player. But if you can make money playing that structure, it’s clear you are better off in terms of rakeback.

So if you are questioning if doing that bonus is worth it, stop being a douche or a troll and just do it already. That is unless you hate money. In which case, send me your screen name and times you play and I will do my best to ease you of that monetary burden. The real moral of the story ends up being, you should play the shortest table structure that you can and still make money since it drastically inflates especially when you get to tables smaller than 6 players. So stop being such a nit and learn to grind those short handed tables. It’s worth learning to do.

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One Response to “Are Bonuses Worth Doing if You Have Rakeback?”

  1. Peteron 17 Oct 2007 at 1:47 am

    Nice blog! More people should read it. If you want, you can register your blog http://www.pokerweblogs.com. It is free and and it automatically updates when you do an update, so visitors of our site can see when you updated your blog. The big advantage is that it will attract much more visitors to your blog.

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