Poker is an exciting game of skill and chance, but for online poker sites, it's also a business. And like any business, they need to make a profit. The primary way online poker rooms generate revenue is through something called "rake." If you're a serious online poker player, understanding rakeback is crucial to maximizing your winnings.
What is Rake?
In online poker, rake is a small percentage taken by the poker room from each pot in a cash game. Rake amounts are typically between 2.5% and 10% of the pot, up to a set maximum. It might not seem like much, but over time those small percentages add up. For a broader understanding of how rake works across various gambling contexts, you can check out the Wikipedia article on rake (poker). Think of rake as the virtual 'house edge' the poker room maintains.
For example, let's say you're playing in a cash game with a $100 pot. If the rake is 5%, the poker room will take $5. The remaining $95 is then awarded to the winner of the hand.
What is Rakeback?
Rakeback is a reward program offered by some online poker rooms. It gives players a chance to earn back a portion of the rake they've paid. The typical rakeback percentage ranges from 20% to 40%, though some sites can offer even higher rates.
Here's how it works – if you generate $100 in rake and have a 30% rakeback deal, you'll receive $30 back into your account. It's essentially free money for simply playing your usual game.
Why Do Poker Sites Offer Rakeback?
Poker rooms offer rakeback deals for a couple of reasons:
Player Retention: It's a highly competitive industry. Rakeback makes a site more attractive and encourages players to maintain loyalty.
Incentivize Higher Volume: The more you play, the more rake you generate, and the more your rakeback adds up.
Understanding Rakeback Calculations
There are two common methods for calculating rakeback:
Contributed: With this method, your rakeback is determined by how much you contribute to each pot.
Dealt: This method rewards players simply for being dealt into a hand, regardless of whether they contribute to the pot.
Closing Thoughts
Rakeback can have a significant impact on your poker bankroll. If you play online poker regularly, make sure to find a room with a solid rakeback program. It's a great way to offset the cost of poker and give your bottom line a boost.