Quote:
Originally Posted by katie75013
Rake, tips, travel and taxes don't apply to cash games?
They do, but not to the extent they do in live tournaments.
Rake: At the Foxwoods Classic running this weekend, the rake is $175 off the top and another 3% is collected for the staff. That works out to be more than 10% of the money invested. At the 2/5 level, the max rake is $4 and is only collected after the pot reaches $60.
Tips: Most cash players will tip about $1 per pot. At a "high" level, that is typically less than 1% of the pot. Many tournament players tip a couple of % on top.
Travel: Someone like limon lives closes to where he plays, so the only travel expense is gas and car depreciation. In these days, I get enough direct money comps back to basically cover food expenses where I play. At a high level, you're flying to the tournament and staying at the casino. You aren't earning any comps playing.
Taxes: If you hit a $200,000 score one year, you have to pay the max tax rate for that year, even though you might not hit again for 2 more years. A cash player is going to have a more steady income and be taxed at a lower rate over that 3 year period. Of course all of us report all our winnings. In cash, the IRS has to depend on your honesty. In big tournaments, the room will issue documentation.