Quote:
Originally Posted by youtalkfunny
Am I understanding you guys correctly?
These rooms are raking $7 off the table, but only $2 of that goes to the house, and $5 to the promo funds?
I'm originally from NH and, while I now live in LV, I have followed the rise and fall of the NH rooms with a spirited interest. I have a family member who is involved with a charity, and was quite concerned many years ago when that charity started to see extra "costs" and admin fees deducted from the gross poker revenue for the day, prior to the charity receiving their portion. If memory serves me, the costs may have even been deducted from their percentage, I can't recall.
Since I work in the poker industry, I offered to look into it. Unfortunately she declined, as she didn't want to risk the charity losing favor and being excluded from the rotation. The charities obviously look at this as free fundraising, and don't want to jeopardize that cash flow.
With that said, my
assumption, and I stress
assumption, on the 2+5 is this. There doesn't have to be a separate promo drop, because there is no segregated promo fund. What they are essentially doing is raising the rake to $7, and then deducting the cost of the promo money given out that day, plus whatever other costs, prior to giving the charity their percentage. On the days that there are no promos, the $2+3 is probably going all to revenue (less the charity cut). It's all smoke and mirrors. And by that I mean that the $3/hand you think is being stored away for another day actually isn't.
Now, there's a chance that they are placing whatever percentage they like of the drop for the day into a P+L line item that they will use in the future for promos, but it can't be the $3/hand that you, the players, think that it is because all the money is mixed together. I'm sure that would be their explanation. But it's quite misleading when advertising $2+3, because only x percentage of the $3 may ever be returned to the players (and that's
if they are withholding a percentage for future reinvestment).
I would be interested to know if they legally have to disclose the daily revenue and charity take. That transparency would get to the bottom of it.
Once again, for the record, this is completely my theory and, if correct, I'm sure it's all legal. I'm not accusing anyone of being shady, just lending my thoughts on the matter hoping that someone who understands the intricacies of that market can make sure that everything is on the up and up.