Understanding Exactly How Rakeback Works
Sitting down at a real world casino in Las Vegas to play Texas Hold’em, you’ll often see more players re-depositing funds rather than cashing out. While differentials in skills explain some of the distribution issues, it’s also important to note the role of the rake. Rake is the percentage of a poker pot which is claimed by the house as a fee, and it can add up to significant amounts over time.
Most poker rooms take a fixed commission from each winning pot, as well as a sliding scale of rake up to a capped level – as the game continues around the table, the house take continues to increase. As a result, there is a gap between break even play and break even return at the poker table – closing this gap through a combination of rakeback and improved play can take you from a scratch player to a +EV player at the table.
Just like the traditional “comps” systems at real world poker rooms, online poker rooms offer rakeback as a loyalty bonus for their players. The system is simple – the site automatically tracks your contribution to the rake in each pot, and those amounts can add up over time. By signing up through a rakeback site, you get a percentage of these fees back as rebates on a regular basis directly to your account or as a bonus. Generally, rakeback requires you to sign up with a partner in order to qualify for the rakeback bonuses. Importantly, while a player may not be able to qualify for the highest initial deposit bonuses, you can qualify for a variety of reload bonuses which can further reduce your rake rate over time.
Because the tracking is automated, you can usually check your rakeback on a real-time or daily basis giving you a better understanding of your continuing progress. Solid rakeback structures can be instrumental in assisting you in being a profitable player in less time and accelerating your poker earnings.
How Are Rakebacks Earned?
With the right signup structure the player can play the poker room and table of choice and still earn rakeback. While traditional bonuses tend to restrict play, rakeback rebates are based on the player’s monthly gross revenue (MGR) to the poker room. The result is players are able to play any type of game from stud to Omaha to Hold’em and in some cases even tournament play, all with strong returns.
Rakeback sets up a win-win for the player and the poker room. The poker rooms are providing rebates based on the revenue you generate for their tables the rebates in turn encourage site loyalty from the player. In its simplest form, rakeback represents a discount on the cost of playing online poker. Those players who count online tables as a source of income rakeback permits you to maximize overall returns.
Rakeback sites credit rebates on a regular schedule, weekly or monthly generally although rebates are offered on a even more regular basis by some sites. Special rakeback rates are available for high volume players, allowing them to move closer to being a +EV player bringing home real money from their poker activities.
The author is a successful limit cash game player. He plays poker online and receives Absolute Poker Rakeback as well as Rakeback at Power Poker.