Quote:
Originally Posted by The Palimax
Your side keeps saying this, but you simply have no information to support it.
There is little to no correlation between table rake and dealer pay. Rake is determined as "the most money we can possible rake and still not lose players to other rooms" or "exactly as much as we're allowed to take by law."
Casinos don't work forward into a rake. They don't go, "Gee, the dealers are $12/hr after we pay overhead on them, and the square footage occupied is $x/foot, so lets charge $6, which by coincidence is exactly what everyone else charges! Astonishing luck!"
No, they work forward. They can get away with taking $6, so they do, and if the projections say the space can generate revenue, they put in the room, and if it makes more money than whatever else they could use the space for, they keep it. If they didn't lose customers at $7 or $8, they'd take that too.
They then pay you as little as humanly possible, because that's the nature of the beast. If you could be paid $0, they probably would. If they could rake $10, and make you pay them to deal, they would.
....and you wouldn't be the first dealer who had to pay to deal. They're out there.
So, please, demonstrate that casinos would have to raise rakes, or stop spouting nonsense. While you're at it, show me all the times that rake was increased a dollar and the dealers got more -- because, you know, rake is somehow tied to dealer pay.
Oh, wait, it's not.
This is a good economic point. Look at the stripper model. At many places, the strippers have to "tap in" and pay a fee just to work there. What's up with that and why on earth would they do that? Well - because they can still make $200 + (and way plus in most cases). Imagine if every player tipped $20 on a $100 pot everytime... The applications to be a dealer would be pretty insanely long. What would the casinos do? Cut pay to zero or even make you as a dealer "tap in" - and you would still do it because your making $1000 a day (again if every player tipped $20 or $30 on a $100 pot or some other ridiculousness).
The economic impact would be - far more card rooms as they are then more profitable for the casinos. (i.e. zero wages plus dealers pay the casino, plus drop wow).
There is a demand and equilibrium curve for this market. It's where it's at because there is a certain level of "tips" that generally comes into the market. There is a certain level of people who tip X and a certain level that tip Y. There is a certain level of entertainment value that a customer expects. Players may think they tip too much, dealers think they don't get enough tips, and the house thinks the rake is too low. One big happy family.
The interesting point of all this is that the entire environment is controlled by tada... the customer. If the customer no longer sees value they will play less, or tip less (less players tipping the standard = less tips), and rake will be less. This would be until a new equilibrium is established.
The call economics the "dismal" science because in the long run, in perfect competition, we'll all just break even just enough to not have any other options look better... ha ha pretty bleak.
In an expanding market, where card rooms are profitable, where dealers total wages are good, where player demand is not being met - this is a good thing (except for player) - but only in the short run. As there is profit opportunity, new rooms open until there is no longer an economic profit. Sure in the micro, good card rooms will do better than bad card rooms etc. - I'm talking a little more macro.
The real danger is when this player demand is met and the market stops growing. I think this is the situation now. The TV Internet boom lead to higher player demand. This was good for dealers but most notably card rooms. Real life example - the Venetian used to have the card room at the noodle Asia spot near the sports book. This was pre TV poker and MoneyMaker etc... They took it out. Didn't make enough. Then a few years later with the boom in full effect - they built - what I think is one of the best card rooms in Vegas.
Now we are seeing player declines - call it economy - call it less casual players - whatever the case may be... and we'll see the downside. At first this will be good for the players as rakes are slashed to attract business and with an excess of dealers, there will be more willing to work for less. But then the players will find it hard to find a place to play, get free drinks, get "poker room" rates, and on and on. Until we once again reach a new lower equilibrium.
So to summarize all this tl;dr
Three constituents
1) Player - wants to pay zero rake, wants to tip zero - but - is very ambivalent about this and is probably the most elastic of the three groups. Most players play for entertainment and do not put great thought into "rake" and "tips". They generally don't go home and say "did I tip to much/little?". They say "did I have a good time?" - probably not that price sensitive - but there are limits. Of the three constituents, the players are in the cat bird seat (as a group). No players no game. More players, more industry. They are also the least likely group to understand that position or care (again - as a group)
2) House - Looks only at the bottom line. The bottom line however takes into account more than just $/sq ft. Hotel room vacancies - little Mrs. poker player donking off in slots etc.. They have control over wages, rakes, floor space, expenses etc. - but still, ultimately at the mercy of the customer.
3) Dealers - the bottom of this food chain. Although they derive economic impact - they are in NO position to change any of the variables. The only decision a dealer has is -should I deal cards for a living or not. No ability to change rake structure/mgmt/player habits/overall player pool size etc.
Group 1 - players can choose to be an active poker player or not. Just by walking in and out of the door. Very flexible.
Group 2 - Houses can decide to spread cards or not (ie slots etc) - moderately flexible.
Group 3 - Worst position. Yes they can "choose" to not deal and uproot their entire life. They are in little control of the macro influences.
So for me - I tip my dealers well. They are most likely to appreciate it and rely on it. The have the least options of the three groups.