Everyone knows that if MGR(Monthly Gross Rake) is calculated using the dealt method you receive more than your fair share of rakeback if you are a very tight player. It can be surprising however, just how different your effective rakeback percentage can be depending on your VP$IP.
There are two different methods for calculating rakeback. One uses the “dealt” method, where an equal amount of rake is credited to each player dealt into the hand. The other is the contributed method, where the site calculates how much you contributed to each pot and credits you with rake based upon that contribution. Full Tilt and Poker Stars use the dealt method, where most other sites use the contributed method.
For this analysis, we will be looking at what we call your “Effective Rakeback Percentage,” which is the amount of money you receive in rakeback divided by the amount of rake you actually paid. In contributed rakeback systems, your effective rakeback will be very close to the percentage published by your rakeback provider, unless you tend to put in huge amounts of money and win very few pots. For dealt methods, your effective rakeback percentage can vary quite significantly from that published number.
The following table contains three $10NL 9-max players from Full Tilt Poker who have different VP$IP stats. The player with the 12 VP$IP is fairly tight where the player with the 25 VP$IP is fairly loose. All numbers are calculated using the commonly advertised 27% rakeback percentage for Full Tilt.
Effective Rakeback Percentages
|Player||VP$IP||Hands||Rake Paid||MGR||Rakeback||Effective RB%|
You can see that the tight player is receiving over 50% in effective rakeback. He is getting over half the money back that was taken out of the pots that he won. This is due to the fact that he is receiving extra MGR from the pots that his looser opponents are participating in. Our loose player however, is only receiving 22% effective rakeback, lower than the advertised rate.
Dealt MGR clearly incentivizes nitty play. A super tight player can receive more than his fair share of rewards, just by sitting back and allowing his opponents to mix it up. My question to you is, should poker sites be providing extra incentives to those who give the least action?