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Here's something it took me a while to learn about "small stakes" holdem, which is what I call games where people care less about the money they are putting into the pot than just playing a few hands.
In these games, even AA will not win the majority of the time. It might win 1/3 of the time. That means 2/3 of the time you are losing with the best hand you can be dealt preflop!
However, when you win, you win big pots. This means huge variance, and you cannot overcome that variance in a single night of a home game seeing *at most* 30 hands per hour. We see about 20 per hour in our game.
As an extreme example, think of buying a lottery ticket for a payoff of $1 million with a 1 in 100,000 chance of winning. This is a huge +EV play for you, but you will have to play for a very long time and lose a lot of money to realize your earnings.
That's what happens when you play in these games. You win less often, but when you win, you win big. Be glad that Mr. 72o finished as the big winner. That will just encourage him to play the same way the next time.
Incidentally, in games like this, it is usually a good idea to play more drawing hands since you usually have odds to draw to a big hand. This is even more true if your opponents will give you cheap looks at the turn and river. (A key reason that people don't respect preflop raises is that they don't think about the size of the pot, and they sometimes will place inappropriately sized bets when they have a good hand. One guy at my home game will routinely bet a quarter into a 3 or 4 dollar pot when he has a hand as good as two pair or even trips, allowing me to draw even to gutshot straights)
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