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If you're referring to Full Tilt, the way it works is that any freeroll you play with cash prizes is divided up among players. So for instance, if there are 100 players and $1,000 worth of prizes, than $10 is charged against each player's MGR. If you're getting 27% rakeback, your rakeback would thereby be deducted $2.70. In my opinion, people who don't play these because of the rakeback hit aren't really being very smart, considering they're still getting a 73% discount on whatever the value is of that event...
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