Would you pay that $500 flat rate upfront before playing any hands ?
Overhead versus marginal costs:
It is worse than that .... You forgot to include the monthly amount your internet provider took from your winnings, the amount the electric company took from your winnings, the amount you pay for rent/mortgage which was taken from your winnings, all the money you paid for food during the month which was taken from your winnings .... Jesus, why bother to get up in the morning, you will only lose your winnings.
Did the concept of the "marginal cost of doing business" ever enter your analysis ?
Fixed Cost Pricing:
A flat rate plan might work. After all, you probably pay your rent, internet bill and a host of other costs by a flat rate. However, would you be willing to pay it upfront, before playing ? If not, you are asking a site to stake your play. You don't ask yopur landlord or the internet provider to do so.
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