How do online poker rooms calculate a tournament entry fee? - MTT Poker Strategy

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How do online poker rooms calculate a tournament entry fee?

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08-20-2019 , 09:04 AM

Meti

newbie

Join Date: Aug 2019 Posts: 37

For example, in a $10,000 NLH tournoment, sometimes buy-in is $20 and sometimes it’s $200. can anyone explain it? how a casino knows that it can make profit? do you have any idea about the math their using?

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08-21-2019 , 03:08 AM

Meti

newbie

Join Date: Aug 2019 Posts: 37

I think that it's actually math "they're" using

but I haven't got access to edit button anymore.
so, no one knows?

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08-21-2019 , 03:46 AM

U shove i call

Pooh-Bah

Join Date: Nov 2008 Posts: 3,809

Supply and demand.

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08-21-2019 , 05:29 AM

Meti

newbie

Join Date: Aug 2019 Posts: 37

Quote:

Originally Posted by U shove i call

Supply and demand.

Could you please explain all factors that must be considered?

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08-21-2019 , 07:25 AM

Speck CHAMP

adept

Join Date: Aug 2014 Posts: 880

Quote:

Originally Posted by Meti

Could you please explain all factors that must be considered?

- What are their expenses for servers etc.
- What are the average winrates of good players in a tournament and how much can they cut and still have profitable tournaments. (Thats why higher buy-ins usually have lower rake since winrates are also lower).
- How fast is the format (the faster the lower the winrates the lower the rake).

These are basically the main factors. In real tournaments the expenses for the casino and the expected ROI for players are both usually higher, thats why the rake for real tournaments is also usually a little higher.

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08-21-2019 , 04:20 PM

Meti

newbie

Join Date: Aug 2019 Posts: 37

Quote:

Originally Posted by Speck CHAMP

so tournament rake depends on players winrate?! it doesnt make any sense.
an online poker room can't schedule tournaments based on player winrates! and how do they must calculate winrates of 500 players for example???
and I'm not talking about rake, its changeable between 5% to 20% in a regular casino.
I want to know how do they calculate whole buy-in, not just the rake of it.

Last edited by Meti; 08-21-2019 at 04:49 PM.

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08-21-2019 , 05:38 PM

Speck CHAMP

adept

Join Date: Aug 2014 Posts: 880

Quote:

Originally Posted by Meti

Why do they need to "calculate" it? They try different buy-in tournaments and stick with the ones making them the most money.

Local casinos usually ask for entry fees from $10- $50 since their reach isnt big enough to attrackt enough players who would be willing to play for a higher amount.

It all depends on how much reach a casino/pokerroom has and also a bit on their reputation.

But why do you even want to know that?

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08-21-2019 , 06:03 PM

Meti

newbie

Join Date: Aug 2019 Posts: 37

it's acceptable.. I just want to know.
Thanks man.

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08-22-2019 , 10:29 AM

theHUfish

centurion

Join Date: Jul 2019 Posts: 162

Well, it's quite simple. The lower the buy-in, the more players there will be.

A few years ago, there was an $10 tournament on Pokerstars with about a million dollars in prizes!

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08-29-2019 , 01:58 PM

#10

Meti

newbie

Join Date: Aug 2019 Posts: 37

Quote:

Originally Posted by theHUfish

Well, it's quite simple. The lower the buy-in, the more players there will be.

A few years ago, there was an $10 tournament on Pokerstars with about a million dollars in prizes!

Nice, but I think there is a lot of risk exist for casino to set a $1 Million prize for just $10 buy-in tourney.
they must reach to 20,000 entries, 60k rebuys and at least 10k add-on to make profit. how they can estimate it and accept the risk?

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08-30-2019 , 02:44 AM

#11

wynner88888

old hand

Join Date: Oct 2018 Posts: 1,330

Their main mathematical consideration is likely to be: how much can we charge to maximise our profit without deterring too many players

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08-30-2019 , 04:44 AM

#12

Meti

newbie

Join Date: Aug 2019 Posts: 37

Quote:

Originally Posted by wynner88888

Their main mathematical consideration is likely to be: how much can we charge to maximise our profit without deterring too many players

I want to know it precisely...

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