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Rakeback

What on earth is rakeback and why should you ever sigh up for it? Does it really open up a new revenue stream for your online poker efforts, or is it just another too-good-to-be-true setup? Does a rakeback deal carry the same benefits for beginners as it does for high limit seasoned players? These are just some of the questions on the mind of a rookie who first hears about rakeback.
In order to understand how rake back really works and what benefits it offers you, you need to understand how rake is collected and why poker rooms collect rake to begin with.

An online poker room collects rake from its players to pay for all the expenses it incurs in its operation. The rake will pay the software provider, it will pay support staff and any additional staff that works on ensuring the site’s optimal functioning. It also pays for advertising and various fees. Ultimately, it is the rake that generates profit for the poker room and pays the salaries of the people who are behind it.

The rake is usually 5% of the pot up to a maximum of $3, but mind you that it can vary from room to room.

Some rooms collect more rake, others do not collect rake at all on micro limits. The rake cap is bigger (up to $5) for some poker rooms. The bottom line is the rake represent but a small percentage of the pot.

Here’s where one of the most common misconceptions comes into the picture: the rake is not paid by the winner alone. It is in fact paid by all those who put money into the pot. Think about it like this: the pot does not belong to the winner when it is raked. The room only awards it to him after the rake is taken. Before that, the pot is a standalone entity in which several of the players at the table have equity.

Depending on how much money you shove into the pot, you pay a bigger or a smaller portion of the rake, regardless of whether you win or lose.
Because the rakeback you earn is a direct percentage of the rake you generate, it is safe to say that rakeback deals and poker prop deals benefit beginners and experienced players in an equal measure.

With that in mind, you probably see that you should never really play a single hand without having signed up to rake rebate beforehand.

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