Hey everyone. We’re about to release an update to our Chrome browser extension for FanDuel that shows rake and overlay in the lobby (props to @nvalencia30 for her work on this). My question to all of you is – how do you calculate rake?
At first we calculated it as the percentage that the site takes from the total buy ins. For example, a $10 buy in tournament with 100 entries and a $900 prize pool would imply a 10% rake. The site takes $100 (10%) of $1000 in total buy ins.
However, we received feedback from some testers who thought the rake should be displayed as 11.11% – the amount that the site takes divided by the prize pool ($100/$900) and rounded to two decimal places. You can think of 11.11% as the ROI you would need on your $9 contributed to the prize pool to break even.
Which percentage would you like to see and why?
Here’s a preview of the feature: