Tonight I entered a FanDuel contest, how much rake I am paying?
I entered a $1 GPP contest with a $3,000 guaranteed prize pool, the maximum entries allowed is 3,571, which means the maximum entries is $3,571 with a pool of $3,000. So to determine the rake for FanDuel for this contests, we take the amount to be paid out divided by the maximum amount of entries which is 84%, minus one equals 16%. This means that FanDuel will pay back 84 cents of every dollar wagered in the pool. The amount we are paying in rake is equal to 16 cents per $1 entry.
With GPPs, it would be better as a user if less lineups were entered as the GPP would be shared amongst fewer users. I suspect the contest I entered tonight will be fully subscribed; and if its not, then the game within the game becomes finding GPPs where the entries are so low that the GPP is higher than the theoretical payout based on the number of entries.
If you think my calculation is wrong, I’d like to hear from you. Please comment below with suggestions.