Full Tilt Poker recently implemented a change in the way a player's Monthly Gross Revenue (MGR) is calculated. MGR is the figure to which the rakeback percentage is applied to determine a player's rakeback payout. On FTP, a player with the standard 27% rakeback will receive a monthly payout of his MGR multiplied by 0.27.
There are three methods for calculating a player's MGR. Though they seem to be only subtly different, the method a site uses can affect a player's rakeback payout by hundreds of dollars.
The dealt rake method : considers each player dealt into a hand as equal contributors to the rake. So if six players are dealt into a hand, and the final amount of rake taken from the pot is $1.50, each player's MGR is increased by $0.25--that is, $1.50 divided by six. A player's MRG is simply calculated by summing each one of these small increments.
This method is advantageous to tighter players who generally fold more preflop. By being counted as equal participants even when they fold, these players are effectively receiving a rebate from the pots that other players at the table build. This method was used to calculate MGR on FTP prior to October 1st, and continues to be used on PokerStars, among others.
The contributed rake method: ignores players who put nothing into the pot. So if we return to the same example, and say that the preflop action involved a raise from the button and a call from the small blind, then only three of the six players at the table receive any credit in their MGR: the button raiser, the small blind, and the big blind. Even though the big blind only put in the bare minimum contribution he was required to make, he still gets credit. So now the $1.50 is divided three ways instead of six, with each contributor to the pot seeing a $0.25 increase in their MGR.
This method is more equitable than the dealt rake method, in the sense that a player's MGR is more closely related to their total rake payments. It's used on the iPoker network.
The weighted contributed method: also allots MGR only to the players who put money into the pot, but it goes a step further and weights that distribution according to what each player wagers. So if one player contributes $5 to a pot while two other players each contribute $10, they will receive an MGR increase of 20%, 40%, and 40%, respectively, of the rake from that hand.
The weighted contributed method is what FTP uses now. The change may be disappointing to tight players who will see a drop in their MGR, but it's a boon to loose, aggressive players who are frequently involved in big pots and consequently pay big rakes.
FTP continues to apply certain deductions to the MGR before calculating rakeback based on each player's individual percentage deal. As always, bonuses, transaction fees, used FTP points, and tournament overlays will be subtracted from the figure reached by the weighted contributed accounting method.
The distribution of rakeback has been fundamentally altered, but the rake amounts taken from each pot remain unchanged. And although the shift may cause grievance to those players who see a reduction in their rakeback payouts, it is mathematically sound and thus arguably healthier to the long-term future of online poker - assuming those loose, aggressive players are receiving Rakeback.
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