Real Monthly. Real Annual. Real Benefits.
Real Poker's members have established the Member Benefits Fund ("MBF") for various promotional reserves. 100% of the addons at AGPT events goes to the MBF. ~90% of MBF goes to the instant prize pool, with the balance to reserve funds at percentages approved by membership majority. The MBF disbursals currently include monthly and annual points races, high hand bonuses, and the monthly (at capacity, $1K reserves until then) and annual public freerolls.
Unlike traditional tournaments, where the addons usually go to the house/dealers, in AGPTs, 100% of the addons go to the MBF. In AGPTs, all entry/re-entry fees go into the club's general fund, not a cash prize pool as in a traditional tournament. In AGPTs, we have a minimum guaranteed prize pool (funded from the general fund), and a projected prize pool based on a reasonable but higher than average number of participants. If the club does not attract enough players to cover overhead, it risks losing money. Conversely, if the club makes money, excess proceeds ("post-tax gross revenue less event overhead") are added to the instant prize pool along with the guaranteed minimum and ~90% of the MBF addons. Real Poker's goal is an 80% or higher return to the members, with a 10:1 or better ROI for first place. We've seen as high as 17:1 for first place thus far, and projections using current model max out at around 20:1. This is still much lower than amusement gambling at chess, which has been as high as 40:1 to 50:1 in Arizona with no umbrage from ADG or the AG office.
Event overhead includes amusement transaction privilege taxes, staffing and employer taxes, forms and other collateral, and funding for reserve funds based on the number of tables used for an event. The club reserves $1-5 per table for certain funds, such as exempt programs, general and emergency reserves, equipment reserves, transportation, etc.)
The MBF and Club Reserve funds have been established by a majority of members and may be adjusted from time to time at general membership meetings.
Notes regarding some programs during soft opening events (pre-Grand Opening):
High Hand Bonuses:
In October meeting we elected to cap high hand bonus at $100 per month. In November, we elected to make keep the nightly $10 high hand bonus ($40/mo) and make the monthly high hand bonus worth a $60 freeroll in the next 60 days. Any extra funds in the monthly high hand over the $60 freeroll reserve will be added to the Player of the Month points race. We'd like to see the PotM reaching at least $250 a month, or the equivalent of 6 freerolls. We're about halfway there now. When we get 6 tables on Tuesdays AND 3+ Saturdays, we could be topping $400.
Monthly Freeroll Championships:
We won't conduct a freeroll championship, open to the public, until this fund reaches $1,000. Our projections have us reaching that amount, and another $400 to cover the dealers, by the end of December. If we're short, we'll cover it from reserve appropriations or additional loans from somewhere. Doing less than $1K seems pointless when we're going to have $400 in overhead costs in staffing alone. Once we are operating at capacity, we anticipate having a reserve of $1,000+ for the monthly freeroll championships, which will feature a different format and a handsome "State Championship" trophy awarded to the winner of each event. Raz, Triple Draw, Pineapple, PLO8, etc. We'll conduct 12 different freeroll championships each year, saving the Hold'em event for our December freeroll, which we call (quite tongue-in-cheek) "the REAL Arizona State Poker Championship".
In June we voted to donate 1% of all optional addons to local charitable concerns. In August we voted unanimously to designate Real Men Wear Pink (American Cancer Society) as our first recipient of $100 donation from Real Poker LLC. In November the members approved the next $100 to go to North Phoenix Scout Pack 619.
We will continue to set aside a 1% of all addons for our philanthropic program with members nominating, vetting, and approving their favorite charities throughout the year. We will increase the donation threshold for this reserve fund as we grow, hoping that our club may some day be capable of donating hundreds of dollars each month to worthy, local causes. Concern for the local community is one of the seven tenants of a cooperative organization.