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But surely the promise of high rake needs to be taken into consideration.
Uh, no. Downtown Las Vegas, the rake could be 5% up to $3. There could be $1 BBJ in the form of a HHJP, which you'll get back quickly so it is close to 0EV -- compare that to some quad 8's beaten monster where you'll rarely get any value back. If you're playing in CA with a $5 dead drop + $1 BBJ, house take should be hugely on your mind. Nevada tends to have much more reasonable structures. I've never played El Cortez, but I've played other places around town.
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I think that argues for a tighter style (if you like, instead consider paying $1 pf for a chance at $25 pots).
Let's say the rake were $3 higher, if you can put in your money very well in a big pot it doesn't matter. Limping for $1 to win $25-$75 is a NL style hand. How much do NL players care about rake? You're looking at implied odds pure and simple. Now if you get $6 dropped and look at $12 in the pot that is now $6, your argument is 100%. How often will the pot be near the rake cap? If you're playing here in Colorado in a 2-6 or 2-10 spread limit with $5 + $2 with a max rake taken at $50, if the pots are often ~$50, the rake is > 10% and you care a ton.
Since the big street bets are $6 in this game, you could see some $100+ pots if anyone at the table has some gamble. Pocket pair and Axs hands can win these pots. The question is how much this game resembles a 1-5 stud game ($12 max pot) and how much it resembles a juiced hold'em game post flop.