Greg Himmelbrand weighed in on the ongoing debate around rake and payout structures in low-limit tournaments. He continued the debate started by LoriAnn Persinger and Ari Engel by offering his perspective on the issue. Himmelbrand emphasized that he was not criticizing Persinger for bringing attention to an important issue in small tournaments. However, he did take issue with clickbait headlines like “Organizers Got First Place Because Rake Exceeded Prizes.” He felt that such statements ignore the fact that rake is tied to the operational costs of the tournament, not the prize money.
Operational Costs Don’t Go Down With Low Buy-Ins. Himmelbrand explained that even in low-limit tournaments, casinos face the same costs as in higher-stakes events. Regardless of the buy-in, there are still staffing, dealers, cashiers, room rentals, etc. This makes the rake in small tournaments high in percentage, not because the organizers are greedy, but because of the need to cover costs. As a result, casinos do not always make money on such tournaments, and in some cases even operate at a loss.
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He also noted that casinos lose income from cash game rake when they host tournaments, and that low-limit tournament players rarely bring in additional income by playing other gambling games after the tournament. Himmelbrand encourages players to vote with their wallets. If a casino takes too high a rake, players should simply not show up for such tournaments. This will force the organizers to reconsider their rates. However, if the rake is within the norm, it is important to understand that casinos are forced to take such a percentage to cover expenses.
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Himmelbrand supported LoriAnn’s idea of the need to standardize the payout structure so that the minimum payout in tournaments is at least twice the buy-in. This would make players feel better about making money, even if the tournament is small. He also suggested developing standards for rake, although he acknowledged that this is more difficult due to the different costs depending on the location of the tournament.What’s happening in the world’s biggest casinos? Read international gambling news. Find more on our site.
