Re: What is a Fair Rake?
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Also along these lines, I have always wondered how much more rake I should be willing to pay if the room is underground. I think it is fair for them to charge more since they are taking a larger risk than a legal room.
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The players are assuming a lot of risk too. I think it should be lower. If one had a choice between an underground and a B&M, what would make one prefer the club?
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Both the players and the operators face bigger risks in a black market game. The former reduces demand, the latter reduces supply. The effect on price (rake) could be either way, depending on which effect is more important.
In practice, my understanding is that rake is indeed generally higher at underground games. This matches my intuition, since the increase in risk assumed by the players (loss of cash on hand due to robbery/raid, very low risk of actual legal trouble) strikes me as less important than the increase in risk assumed by the operators (loss of cash on hand due to robbery, loss of all proceeds from business due to civil forfeiture, significant risk of going to jail).
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