Top Heavy
I don't believe the casinos have a set formula for tournament payouts. Most tournaments prize money is based on the number of players anyway and with a set percentage they would have to pay odd amounts. They usually just round the money down to whole numbers as close to the original prize structure as possible if the number of players are not reached.
Another thing most of the casinos are bad about "Top Heavy" tournaments. They want that large 1st prize that tries to catch the player’s attention and most of the time does. If they really wanted to draw in the players they would set up a tournament that allowed the semifinalist to win their entry back and the finalist 1st - 6th to all make worth wild money. When I make a final table especially in a big tournament I would like to know I’d make at least $4,000 for 6th place (now it is normally $1,500 - $2,000). As a finalist I think you should make enough to cover all your expenses and still make a good profit.
Here are three of the most popular tournaments around and an example that they’re are no set percentage for the tournaments, just what each casino wants to payout.
Las Vegas Hilton - $1,000,000 (Open)
$1,000 entry and need to qualify for finals in May.
No reentries allowed, No cash value chips used.
Guaranteed prize money
1st - $1,000,000
2nd - $ 40,000
3rd - $ 25,000
4th - $ 15,000
5th - $ 10,000
6th - $ 5,000
7th - $ 3,000
8th - 18th - $1,000
Stardust - $100,000 (semi-invitational)
NOTE: February’s tournament was only $75,000
$350 - $375 entry plus $600 buy-in Live money, Reentries: $175 for first come first serve, $600 buy-in required with each reentry.
Prize money Structure, based on 300 players.
1st - $100,000
2nd - $ 10,000
3rd - $ 5,000
4th - $ 4,000
5th - $ 3,000
6th - $ 2,000
7th - 18th - $200
New Frontier (Open)
$300 entry, $300 buy-in Live money, reentries $150 with $300 buy-in per reentry.
Prize money Structure, based on 180 entries and 120 reentries.
Note: some taken out for dealers cost.
1st - $30,000
2nd - $15,000
3rd - $10,000
4th - $ 5,000
5th - $ 2,500
6th - $ 1,500
7th - 18th - $200
As you can see there is no comparison to percentage payouts in these tournaments.