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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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