The Basics of Poker Rake Back

Jason Kirk
Mon, 24 Oct 2005

Getting rakeback has become one of the most contested issues in online poker recently.

Player Caution:  Many online poker rooms do not offer rake back and do not allow their affiliates to offer it.  Regardless,  there are many affiliates offering players deals that conflict with the terms of their agreements with their poker rooms.  A player signing up with such a rogue affiliate risks having his account closed and winnings forfeited.  It is on the shoulders of players to find out whether the poker room they're joining allows it or not.  For instance,  TruePoker.com allows some rake back agreements;  PartyPoker.com expressly forbids them.

Conventional poker wisdom says that the best players are the ones who win all the money.  For the most part that's true,  but it isn't only because of those players' skill.  Anyone who believes it is has forgotten to figure in the biggest hidden cost in poker:  the rake.  The rake prevents poker from being a zero-sum game  --  one in which the winners all win and the losers all lose.  That set percentage of each pot being taken off the table means that decent players can go through long stretches making little or no money even if they win a few pots here and there.  In low-limit games,  the rake can be high enough in comparison to the stakes to make the game almost unbeatable over the long term.  This is one reason

that much of the poker advice available to newcomers idealistically tells them to build up a bankroll quickly and get out of low-limit games ASAP.  In the real world that isn't always possible,  leaving some players resigned to playing in the low limits much longer than they would like.  Luckily for these grinders there's another option:  rakeback.M

It's no overstatement to say that rakeback is one of the greatest creations of the online poker boom.  In essence,  it's a deal between you and the house to recover a portion of the rake you pay and return it to your bankroll.  Rake back deals are possible with online poker rooms because the costs of running such rooms are dramatically lower than running a brick-and-mortar poker room.  These rooms still take a rake like a B&M casino would,  but they can afford to pay some of it back in exchange for player loyalty without losing any of their profit margin.  While a handful of small online card rooms pay rakeback directly to players,  the majority of rakeback deals are done through sites affiliated with card rooms.

To get a rakeback deal,  you must sign up for a new player account at a participating poker room by clicking through a link from the affiliate site  (an affiliate who offers rakeback).  This means that if you already have an account with Absolute Poker,  for instance,  you cannot get a rakeback deal there through any affiliate site.  Once you've signed up through the affiliate site's link,  the poker room tracks your play and pays back a certain percentage of the rake you generate to the affiliate.  Then,  according to the terms of the rakeback deal you agreed to when signing up for your account,  the affiliate returns part of that money to you.  If that sounds complicated,  just think of it like your money is taking a roundtrip flight to Las Vegas and has to connect at another airport before it returns home.

High-limit players can certainly benefit,  but it's the low-limit players who have the most to gain from rakeback.  Consider that most online poker rooms take a rake of 5% up to a maximum amount,  usually around $3-4.  If a $2/$4 limit holdem player wins an $80 pot,  he's actually paying the house a full 5% of his winnings.  If a $100/$200 limit holdem player wins a $2000 pot,  he's paying the house less than 1% of his winnings.  The low-limit player's rakeback can be the difference between being a break-even player and a winning player;  the high-limit player's rakeback is more likely to simply provide spending cash.  If you're trying to build a bankroll by playing anything below $5/$10,  it's to your advantage to find a rakeback deal.

The percentage of rake that is returned to you when you sign up for a deal varies greatly.  Some sites'

rakeback deals return as little as 20% to your account.  While that's better than nothing,  it also pales in comparison to the 35% rates offered at some other sites.  This means that it pays to shop around before signing up for a rakeback deal.  Luckily there are many more rakeback affiliate sites than there are actual card rooms,  so you really can take your time and find a valuable deal before committing yourself to a particular deal.  One unfortunate consequence of having so many affiliates to choose from,  however,  is that the possibility exists of signing up with a less-than-reputable site that will disappear with your money.  For this reason it is extremely important that you do your research.  Most reputable rakeback affiliates have detailed websites with a wealth of information describing what poker rooms they deal with and how they pay you.  Many of them will also have forums where their users can discuss topics relating to poker:  And the presence of these forums is a good sign that you're dealing with an affiliate who will hold true to his word.

While getting a rakeback deal is great in and of itself,  extracting maximum value from it requires effort on your part.  First off,  you should only sign up for a rakeback deal at a card room that you know has features you want.  If you only play $10-$20 limit holdem and the card room you sign up for only offers limits up to $5-$10,  you're not going to want to play at the room often and thus will miss out on a lot of value.  It is also worth noting that rakeback almost always applies only to cash games  --  deals that will also return a portion of your tournament entry fees to you are few and far between,  so if you mostly play tournaments you're going to have to add cash games to your repertoire if you want to get value from a rakeback deal.  Finally,  keep in mind that the more you play,  the more they pay.  Racking up a big rebate from your favorite card room means racking up a lot of hours at the tables.  If you aren't prepared to play a lot of poker,  you won't see big returns from your rakeback.  Still,  anything you get back from the card room is money that you would've kissed goodbye otherwise,  so you're looking at a true bonus no matter how little the amount.~~

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