Many people have questions about how their Monthly Gross Revenue (MGR) is calculated by the online poker sites. Unfortunately the poker sites don’t make it easy because they typically use one of three models.
Dealt Method
In the Dealt Method you earn rake on every raked hand. Obviously a raked hand would be defined as one in which a flop is seen (no flop, no drop) and rake is taken by the poker site.
Using this method all players who are dealt into the hand receive some portion of credit for the rake generated in that hand whether or not they contribute anything to the pot.
So the formula for calculating the dealt method is rather straightforward:
Raked Amount / Number of Players Dealt a Hand = MGR
As an example, in a 10 handed game with $2.00 in rake being taken out you would have:
$2.00 / 10 = .20
Each player would therefore receive credit for .20 for that hand.
Average Contributed Method
The Average Contributed Method is very similar to the Dealt Method however the major distinction is that the player must contribute to the pot in some manner. In other words even if you folded the small or big blind you would get credit for the hand.
Likewise the formula for calculating Average Contributed Method rake is also very similar to the Dealt Method:
Raked Amount / Number of Players Who Contribute to the Pot = MGR
So if we had the same 10 handed game and the same $2 in rake but only 4 players actually put money in the pot the calculation would be:
$2.00 / 4 = .50
The four players who put money in the pot in some way would each earn .50 MGR.
Weighted Contributed Method
The Weighted Contributed Method is similar to the previous two but it gets a little tricky because you are attributed MGR based on how much money you put into the pot.
Just like the Contributed Method you only earn rake when you put money into the pot so that part of the calculation is the same. However, the amount you are given credit for is not evenly split amongst the number of players who contributed but instead it is weighted in terms of how much you’ve contributed to the pot.
The formula for the Weighted Contributed Method is as follows:
( Amount Contributed to the Pot / Size of Pot ) * Amount Raked = MGR
So let’s take an example where you are in a 10 handed game and 6 players see a flop. Four players fold on the turn and you miss your flush draw and fold to a bet on the river.
Now, let’s look at our variables for the formula:
The total pot ended up being $100
You put in $30
Rake was $3
( $30 / $100 ) * $3 = .90
So in the above example your rake that is counted towards your MGR would be .90
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