STT rake vs cash game rake

Galwegian · #1 11-07-2006, 07:16 AM

I have a basic question about rake. Can anyone explain to me why typically STT rake is 10% of the buyin whereas the typical rake on a pot from a cash game is a much lower percentage of the pot than 10. What (if any) is the theoretical justification for this discrepancy?

I can't find anything on this using search

ICMoney · #2 11-07-2006, 05:35 PM

I only play STT and am not familiar with ring-game rakes.

The STT rake is paid one time per hour.

The ring-game rake is lower but paid more often so it might add up to be about the same.

Just a guess,
ICMoney

Simo_8ball · #3 11-07-2006, 05:37 PM

Rake in a cash game is paid almost every hand. Rake in a STT is taken once only.

Abbaddabba · #4 11-07-2006, 10:42 PM

If you view it as being paid every hand, then it's significantly less than 5%, unless you plan on winning every hand.

You pay about 2BB/100 in rake at smalls takes games.
You pay about 10% in fees per tournament.

Before you figure out which you're paying more in, you need to choose what stakes are equivalent to one another.

gull · #5 11-07-2006, 11:52 PM

Equivalent stakes would probably be dependent on bankroll requirements (which are based off winrates).

Galwegian · #6 11-08-2006, 07:09 AM

OK - let me rephrase slightly. 10 players of equal skill sit down and play an $10+1 STT. Let's say that the average length of time that each player lasts is 30 minutes (is this reasonable? I play on full tilt but I guess that the STTs are slow there by comparison to other sites). So each player has EV of -$1 per 30 minutes = -$2 per hour (equal skill level). If the same players sit down and play 5c/10c no limit (they all buyin for $10) for 1 hour will they all have an EV of -$2 over that hour?

ayecappy · #7 11-08-2006, 10:00 AM

I dont see how "time" can even be a factor in this, who cares if the sng has an avg time of 45 mins or 5h's, the latter doesnt get cheaper does it?
Im more inclined to think it has to do with the average equity or return you have per pot vs per tournament or something. for the same amount of money youd have a much higher return in a sng than to play one hand cash game for the same money. I have no idea though [img]/images/graemlins/laugh.gif[/img]