Originally Posted by Donk Quixote
A lot of live venues have low buy-in MTTs with fees in excess of 50%. I would imagine that these are unlikely to be very profitable...what point do you guys think it becomes worth playing?
Assume a fairly standard 1-day tournament structure, and that you are a solid MTT player and your opponents are mostly bad, as is standard for a live MTT.
50%? Really? That would mean a $50 tournament would have a buy in total of about $80 in order to exceed 50%.
Keep in mind that fees have two purposes.
1. Profit for the casino
2. Pay the dealers
The lower the buy in, the higher a percentage of the buy in is required.
A $100 event with 50 players will take just about as long to complete as a $50 event with 60 players. If they charge $10 for the $100 event,(10%) they have to charge $10 for the $50 event (20%) to realize the same amount of money to pay the dealers and make some money on the process.